The Rupiah Is Predicted To Strengthen Amid The Weakening Of The US Dollar And The Fed's Policy Dynamics

Illustration. (Photo: Doc. Antara)

JAKARTA - The rupiah exchange rate in trading Thursday, December 11, is estimated to have strengthened against the United States (US) dollar.

Citing Bloomberg data, Wednesday, December 10, 2025, the rupiah spot exchange closed down 0.07 percent to the level of Rp. 16,688 per US dollar.

Meanwhile, the Jakarta Interbank Spot Dollar Rate (Jisdor) exchange rate of Bank Indonesia (BI) closed down 0.07 percent to a price level of IDR 16,688 per US dollar.

Doo Financial Futures analyst Lukman Leong said that the rupiah has the potential to strengthen as the US dollar weakens after FOMC's decision to cut interest rates by 25 bps.

He said that although the projected cut in interest rates in 2026 fell to once, investors still hope that changes can occur after the replacement of the Fed Chair next year which will be determined by President-elect Donald Trump.

"Although the prospect of cutting the 2026 interest rate has decreased to just once, investors hope that this can change as the Fed's head changes next year with Trump's preferred person," he told VOI, Thursday, December 11.

Meanwhile, money market observer Ibrahim Assuaibi said that although 25 basis points have been predicted, differences of views among policymakers have made the market cautious.

"The main focus is on the comments of Fed Chairman Jerome Powell, especially guidance on the direction of interest rates in 2026. Market participants are looking for clues on how Fed plans to balance economic support with inflation control," he said in a statement, quoted Thursday, December 11.

He added that the market is also looking forward to Powell's summary of Economic Projection and comments to understand the next policy direction, especially since 2026 has the potential to bring major changes to the FOMC structure, including the position of chairman.

Ibrahim estimates that the rupiah will fluctuate in trading Thursday, December 11 in the price range of IDR 16,680 - IDR 16,720 per US dollar.

Meanwhile, Lukman projects that the movement of the rupiah on Thursday, December 11, will move in the range of Rp16,600 per US dollar to Rp16,700 per US dollar.