16.02.202607:29:32UTC+00Rupiah Steady in Thin Holiday Trade

The Indonesian rupiah was little changed around 16,830 on Monday, stabilizing after recent losses in subdued, holiday-thinned trading. Market participants are now focused on Bank Indonesia’s policy meeting later this week. In January, the central bank left its benchmark rate unchanged at 4.75% for a fourth consecutive month, following a total of 150 basis points in cuts since September 2024. A recent statement from a BI official indicated there is still scope for further easing if conditions permit.

On the fiscal side, Finance Minister Purbaya Yudhi emphasized that government policy remains geared toward supporting economic growth, while exchange-rate stability remains the responsibility of the central bank. Investors are also awaiting Indonesia’s Q4 current account figures, due this week, after the country posted its first surplus in nearly two years in Q3.

Externally, the dollar index was broadly steady in light trading, after last week’s softer U.S. inflation data strengthened expectations for Federal Reserve rate cuts later this year.