Key insights and market outlook
The Indonesian rupiah's movement is expected to follow the US dollar index trend on Monday (15/12/2025). The rupiah had strengthened 0.18% to Rp16,646 per USD on Friday. BCA's Chief Economist David Sumual noted that the US dollar index weakened after the Fed's rate cut, with potential for further easing next year. This followed a rise in US initial jobless claims to 236,000.
The Indonesian rupiah is likely to follow the movement of the US dollar index at the start of this week (15/12/2025). On Friday (12/12/2025), the rupiah had strengthened 0.18% to Rp16,646 per USD in the spot market, while based on Bank Indonesia's (BI) Jisdor rate, it gained 0.09% to Rp16,652 per USD.
BCA's Chief Economist David Sumual noted that the US dollar index weakened one day after the Federal Reserve (the Fed) cut interest rates in line with expectations. The Fed also indicated a potential for further rate cuts next year based on the Dot Plot results. This development was supported by a rise in US initial jobless claims to 236,000 for the week ending December 6, higher than the previous week's 191,000.
The movement of the rupiah will likely be influenced by the US dollar's performance. Investors will be watching key economic indicators and central bank actions that could impact currency valuations. The rupiah's recent strengthening provides a positive note, but market participants will be cautious ahead of potential volatility.
US Fed Rate Cut
Rupiah Strengthening
US Initial Jobless Claims Rise