Indonesian Rupiah Faces Volatility at Year-End

Currency Depreciation Continues

The Indonesian rupiah continued its weakening trend against the US dollar on December 29, 2025, closing at Rp16,788 per USD in the spot market. This represented a 0.25% daily depreciation and maintained the level seen in the Jakarta Interbank Spot Dollar Rate (JISDOR) ¹

. The currency's movement was influenced by various factors including profit-taking in the State Securities (SUN) market, as the yield spread between Indonesian and US government bonds narrowed ¹

Source 1

https://investasi.kontan.co.id/news/dipengaruhi-berbagai-sentimen-rupiah-melemah-menjadi-rp-16788-per-dolar-as

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Regional Currency Trends

The rupiah's performance was largely in line with other Asian currencies, which faced similar pressures. The Thai baht experienced the deepest depreciation at 0.46%, followed by the Philippine peso at 0.08% ²

. Analysts noted that the rupiah was also affected by the prospect of BI's interest rate cuts and the government's expansive fiscal policies ⁵

Source 5

https://investasi.kontan.co.id/news/waspada-tensi-geopolitik-begini-proyeksi-rupiah-untuk-selasa-3012

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Global Economic Influences

Despite the US dollar index (DXY) weakening to below 100, reaching 98.03, the rupiah struggled to gain ground due to high dollar demand and limited foreign capital inflows ³

. The DXY had declined by 1.44% in the previous month, driven by the strengthening of major currencies like the euro ³

Source 3

https://investasi.kontan.co.id/news/rupiah-masih-dibayangi-volatilitas-meski-indeks-dolar-as-melemah

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Market Outlook

Analysts remain cautious about the rupiah's prospects, citing ongoing global geopolitical tensions and domestic economic factors. The currency reached its weakest level since April 2025, highlighting the challenges faced in the current economic environment ⁴

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