Rupiah Faces Downward Pressure Against Strengthening US Dollar

Currency Market Dynamics on December 18, 2025

The Indonesian rupiah opened slightly weaker at Rp16,695 per USD on December 18, 2025, showing a marginal decline of 0.006% from the previous day's close ⁵

. Throughout the day, the currency experienced fluctuating pressure, reaching as high as Rp16,727 per USD by mid-day ⁷

Source 7

https://investasi.kontan.co.id/news/rupiah-terus-melemah-ke-rp-16727-per-dolar-as-di-tengah-hari-ini-1812

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Factors Influencing Rupiah Movement

The rupiah's depreciation was largely influenced by the strengthening US dollar in global markets. This trend was observed across various Asian currencies, with the Taiwanese dollar experiencing the most significant decline at 0.12% ⁶

. Other Asian currencies showed mixed movements: the Korean won and Philippine peso gained 0.02% and 0.19% respectively, while the Japanese yen and Malaysian ringgit lost ground ³

Source 3

https://finansial.bisnis.com/read/20251218/90/1937848/kurs-dolar-as-di-bca-bri-bank-mandiri-dan-bni-hari-ini-18122025

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Market Analysis and Expert Views

Despite the short-term depreciation, Finance Minister Purbaya Yudhi Sadewa expressed optimism about the rupiah's prospects. He cited the return of foreign capital flows into domestic financial markets as a positive indicator, supported by decreasing depreciation expectations and maintained low currency and country risk ²

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Technical Outlook

Analysts project that the rupiah will continue to experience volatility in the near term. The currency is expected to trade within the range of Rp16,690 to Rp16,720 per USD ³

. The stability of the rupiah is supported by Bank Indonesia's commitment to maintaining interest rates at 4.75% and intervening in both spot and Domestic Non-Deliverable Forward (DNDF) markets ⁴

Source 4

https://internasional.kontan.co.id/news/rupiah-dan-dolar-taiwan-melemah-kamis-1812-pagi-mata-uang-asia-tertekan-dolar-as

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