Indonesian Rupiah Strengthens on Expectations of Fed Rate Cut
Executive Summary
Key insights and market outlook
The Indonesian rupiah strengthened against the US dollar on Thursday, November 27, 2025, closing at Rp16,636 per USD, a 0.17% gain. The Jakarta Interbank Spot Dollar Rate (Jisdor) also appreciated 0.17% to Rp16,644 per USD. Analysts attribute the rupiah's rise to weakening US dollar index and market expectations of a potential Fed rate cut following the US election dynamics.
Deep Dive Analysis
Indonesian Rupiah Gains Ground on Fed Rate Cut Expectations
Currency Market Dynamics
The Indonesian rupiah demonstrated strength against the US dollar during Thursday's trading session on November 27, 2025. The currency closed at Rp16,636 per USD, representing a 0.17% appreciation from the previous day's close. Similarly, the Jakarta Interbank Spot Dollar Rate (Jisdor) followed suit, moving to Rp16,644 per USD, also marking a 0.17% gain from Rp16,673 per USD on Wednesday, November 26, 2025.
Analyst Insights
Ibrahim Assuaibi, an economist specializing in currency and commodities, noted that the rupiah's strengthening was primarily driven by the decline in the US dollar index. The market is currently focused on the upcoming Federal Reserve leadership dynamics, which is creating expectations of potential monetary policy adjustments.
Market Implications
The rupiah's appreciation against the backdrop of expected Fed policy changes highlights the currency's sensitivity to global monetary policy shifts. As the market continues to monitor developments surrounding the Fed's leadership and potential rate adjustments, the rupiah's trajectory remains closely tied to these external factors.
Source References
Story Info
Topics Covered
Key Events
Rupiah Appreciation
Fed Rate Cut Expectations