According to Bank Woori Saudara analyst Rully Nova, the currencys gains were supported by the latest interest rate cut by the US Federal Reserve.

The rupiah is expected to trade between Rp16,640 and Rp16,690 today, supported by positive global sentiment following the Fed’s rate cut, Rully said on Thursday, December 11, 2025, as quoted by Antara.

The Federal Reserve earlier lowered its benchmark interest rate by 25 basis points to 3.5–3.75 percent, a widely anticipated move.

The decision marks the Fed’s third and final rate cut of 2025, following five consecutive meetings in which rates were left unchanged before being reduced at the September Federal Open Market Committee (FOMC) meeting.

The US central bank cited moderate economic growth as a key factor in its decision. Fed Chair Jerome Powell noted that job gains had slowed this year, unemployment had edged up through September, and inflation had risen compared to the start of the year.

The rate cut is intended to support the Feds long-term goals of maximum employment and 2 percent inflation.

Rully added that the rupiahs strengthening remains constrained by negative domestic sentiment, particularly economic risks linked to the ongoing floods in Sumatra.

This can be seen from the decline in foreign interest during Tuesday’s (December 9) government bond auction, which fell 45.3 percent from the previous month. Market participants also remain cautious ahead of upcoming US economic data releases, he said.

Separately, Mirae Asset Indonesia Senior Market Chartist Nafan Aji Gusta earlier predicted that the Fed’s policy shift would influence the Jakarta Composite Index (IHSG) in the short term.

Aside from the Feds developments, the release of September 2025 financial reports will also affect the indexs short-term movement, he said in late October.

Nafan added that the Feds decision signaled the end of its quantitative tightening program as of December 1, 2025, though the central bank warned that inflation remains above target.

Meanwhile, Taufan Dimas Hareva of the Research and Development Division at the Indonesia Commodity and Derivatives Exchange (ICDX) said the rupiah will continue to be influenced by expectations surrounding the Feds future rate path

This follows several solid US economic indicators, including GDP growth and stable weekly jobless claims, he said on Thursday, October 30, 2025.

Source : Tempo.co

Dec 13, 2025