Rupiah Opens Lower Amid Signals of Further Monetary Easing

Bisnis.com JAKARTA – the rupiah exchange rate opened lower against the US dollar in trading Monday (december 29, 2025). The market reacted to signals of further easing of the central Bank’s monetary policy.

According to Bloomberg at 09.13 WIB, the rupiah weakened 0.16% or 26 points to IDR 16,771 per US dollar. Meanwhile, the US dollar index also weakened 0.06% to 97.95.

Trading economics estimates that the rupiah will trade at IDR 16,768.57 at the end of this quarter.The research states that the market will wait and see to observe the direction of the Indonesian Central Bank’s policy in the future.

At the Board of Governors Meeting (RDG) in December 2025, Bank Indonesia decided to hold the BI-Rate at 4.75% and signaled the opportunity for further easing next year by monitoring inflation developments. Throughout 2025, BI has cut interest rates by 150 basis points (bps).

“Caution is also increasing ahead of the release of important domestic data next week, including December inflation and November trade data,” wrote the research on Monday (December 29, 2025).

Meanwhile, Trading Economics projects that the rupiah will experience its second consecutive decline this week, extending the year-to-date (YtD) decline to around 4%. This decline has made the rupiah the weakest exchange rate among other Asian currencies.

At today’s opening, the Japanese yen exchange rate strengthened 0.12%, as did the taiwan dollar which strengthened 0.02% and the korean won which strengthened 0.58%. Simultaneously occurring, the Malaysian ringgit, which is currently on a strengthening trend, today opened 0.05% lower against the US dollar.

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