The Indonesian rupiah strengthened to around 16,700 on Wednesday afternoon, snapping six sessions of weakness after the central bank maintained its benchmark rate at 4.75%, as expected. The decision reflected confidence that inflation would stay within the 2.5±1% target range and efforts to stabilize the currency amid global uncertainty and improve policy transmission. The hold follows an October pause after 150 bps of cuts over the past year to support growth. President Prabowo Subianto aims to lift economic growth to 8% during his term, compared with about 5% before the pandemic. Despite today’s rebound, the rupiah remains down roughly 3.8% against the dollar this year. Governor Perry Warjiyo said in a media briefing that there is still room for further cuts, but stressed that future moves will be data-dependent. Globally, the dollar index hovered near 99.6 as fading expectations of a near-term Fed cut persisted amid sticky inflation, while investors awaited key US data.
