JAKARTA - The rupiah exchange rate on Wednesday, December 24, 2025, showed a strengthening against the US dollar (USD) ahead of the 2025 Christmas holiday.
In the spot market, the movement of the rupiah was observed to be stable with a tendency to strengthen, namely at the beginning of trading on Wednesday, December 24, the rupiah opened at the level of Rp16,775 per US dollar, strengthening slightly by 0.08 percent compared to the closing of Tuesday, December 23, which was at the position of Rp16,787 per US dollar.
The strengthening of the rupiah is in line with the weakening of the US dollar index (DXY), which reflects the strength of the dollar against six major world currencies, namely DXY recorded a decline of 0.17 percent to 97.775, continuing the correction trend after trading earlier weakened by 0.35 percent and was in the range of 97.942.
To note, quoting Bloomberg, on Tuesday, December 23, the spot rupiah exchange rate closed down 0.06 percent to Rp16,787 per US dollar.
Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of the Bank Indonesia (BI) closed down 0.10 percent at a price level of Rp16,790 per US dollar.
Doo Financial Futures analyst Lukman Leong assessed that the rupiah exchange rate has the opportunity to strengthen as the weakening of the US dollar continues.
He added that pressure on the US dollar came after a number of US economic data were released weaker than expected, including durable goods sales and consumer confidence index, although the US Gross Domestic Product (GDP) revision showed better results than the initial estimate.
"The rupiah has the potential to strengthen against the US dollar which continues to weaken after several weaker US economic data, including durable goods sales data and consumer confidence, even though the revision of US GDP data is stronger than expected," he told VOI, Wednesday, December 24.
In addition, Lukman assessed that the US dollar was also under pressure due to the Federal Reserve's policy of adding liquidity of US$40 billion per month, which began to be implemented since mid-December.
"The US dollar is also still under pressure by the addition of 40 billion US dollars of liquidity per month by the Fed which has started in mid-December," he said.
Meanwhile, money market observer Ibrahim Assuaibi, assessed that the weakening of the rupiah was triggered by the increasing global geopolitical tensions, one of which came from the US and Venezuela relations, following reports that the US navy tried to seize a third oil tanker associated with the country.
In addition, he said tensions in the Middle East region had again increased as the Iran-Israel conflict heated up, where the latest reports indicate that Iran could use large-scale military exercises as a cover for possible offensive operations.
In the future, Ibrahim also conveyed that market participants are still taking into account the opportunity for further monetary policy easing by the Federal Reserve until 2026.
"Because the latest data show cooling inflationary pressures and a weaker US labor market," he said in his statement, quoted Wednesday, December 24.
On the other hand, global market attention today is focused on a number of US economic indicators, such as the four-week average of the ADP Employment Change, the delayed third quarter Gross Domestic Product (GDP) report, Durable Goods Orders data, Industrial Production, and Consumer Confidence Index.
Ibrahim estimates that the rupiah will move fluctuatio but within the price range of Rp16,780-Rp16,810 per US dollar.
Meanwhile, Lukman projected the movement of the rupiah to move in the range of IDR 16,650 per US dollar to IDR 16,800 per US dollar on Wednesday, December 24.
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