December 29, 2025 | 07:50 pm
TEMPO.CO, Jakarta - The exchange rate of the Indonesian rupiah against the U.S. dollar on Monday afternoon, December 29, 2025, closed weaker, down 43 points or about 0.26 percent to Rp16,788 per U.S. dollar.
In line with market movements, Bank Indonesia's (BI) Jakarta Interbank Spot Dollar Rate (Jisdor) reference exchange rate placed the rupiah at Rp16,788 per U.S. dollar in this evening's trading.
Currency analyst at Doo Financial Futures, Lukman Leong, stated that the rupiah's decline is still influenced by domestic and regional sentiments, as well as sentiment factors stemming from market expectations regarding the possibility of a cut in BI's benchmark interest rate in the near future.
"The rupiah weakened against the U.S. dollar due to the prospects of a BI interest rate cut and the government's expansive policies," he said in Jakarta on Monday, as quoted from Antara. Apart from domestic factors, pressure also came from the regional area.
According to Lukman, the rupiah was dragged down by the sharp correction that occurred in other Asian currencies, especially the Malaysian ringgit and the Thai baht, both of which experienced significant depreciation against the U.S. dollar.
He predicted that the pressure on the rupiah is still likely to continue if there is no stabilization measure from the central bank.
"The rupiah will certainly continue to be under pressure and weaken if not intervened by BI," he said.
From the global sentiment side, Lukman assessed that this week is relatively minimal in terms of important economic data releases. Therefore, market participants' attention is more focused on the movement of global equity markets and geopolitical developments.
"There are still no significant economic data releases this week; investors just need to be cautious about sentiment in the equity markets and geopolitical tensions in the Caribbean Sea and the simulated China-USA war in the South China Sea," he said.
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