27.02.202606:07:17UTC+00Rupiah Steady Ahead of Key Data

The Indonesian rupiah was little changed on Friday, trading around IDR 16,760 per dollar and consolidating recent gains as investors awaited February inflation and January trade data for fresh guidance. January’s headline inflation quickened to a near three-year high of 3.55% year-on-year, while core inflation climbed to a nine-month peak of 2.45%. Both, however, remained within Bank Indonesia’s target band, keeping price pressures contained and reinforcing expectations that monetary policy can remain supportive.

December’s trade surplus also exceeded forecasts, with exports growing faster than imports and bolstering external stability. In mid-February, Bank Indonesia left its benchmark interest rate unchanged at 4.75% for a fifth consecutive meeting, after cutting a cumulative 150 basis points since September 2024, and signaled room for further easing in line with President Prabowo Subianto’s pro-growth agenda.

The rupiah is on track to gain about 0.7% for the week and 0.2% for the month, underpinned by robust foreign-exchange reserves and improving fiscal conditions, while a firm US dollar index has capped stronger appreciation.