06.01.202605:38:18UTC+00Rupiah Dips for 3rd Session

The Indonesian rupiah continued its decline for the third consecutive session on Tuesday, closely trading at approximately 16,760 per dollar. This trend aligns with a cautious market sentiment stemming from key domestic economic indicators. Although inflation rose in December, it remained within Bank Indonesia's target range of 1.5% to 3.5%, which mitigates the immediate need for monetary policy tightening. The Consumer Price Index (CPI) climbed to a 20-month high of 2.92% in December 2025, with core inflation reaching a seven-month peak. The central bank has previously indicated the potential for further monetary easing in 2026 to bolster economic growth, particularly in the aftermath of the devastating floods in Sumatra, on the heels of a cumulative 150 basis points cut implemented between September 2024 and September 2025. On the trade side, November's trade surplus fell short of projections as exports experienced their most significant decline in nearly two years. Market participants are also exercising caution in anticipation of the forthcoming foreign exchange reserves data, due for release later this week, following November's reserves rising to a three-month high of approximately USD 150 billion. On a global scale, the dollar index stabilized around 98.4 after a session marked by geopolitical tensions and uncertainties surrounding the Federal Reserve.