04.02.202606:41:04UTC+00Rupiah Edges Lower Ahead of Q4 GDP Data

The Indonesian rupiah experienced a slight decline, reaching approximately IDR 16,770 per dollar on Wednesday. This movement marked a reversal of modest gains from the previous session, as market sentiment became cautious in anticipation of key domestic data releases. Investors are particularly focused on Thursday's fourth-quarter GDP figures, with expectations of economic growth deceleration attributed to the ongoing impact of last year's disaster in Sumatra. Additionally, January’s foreign exchange reserves data is expected shortly, following a nine-month high recorded in December. There is growing anticipation of further monetary easing, following a cumulative 150 basis points reduction since September 2024. Bank Indonesia is emphasizing economic growth this year due to outputs currently below potential. However, the currency's depreciation was somewhat limited when Finance Minister Purbaya Yudhi commented that the rupiah's fair value is around 16,500. In a separate development, Jakarta confirmed the completion of a reciprocal tariff agreement with the United States, pending formal signing. On the global stage, the dollar index remained subdued as U.S. President Donald Trump authorized a $1.2 trillion budget, effectively ending the partial government shutdown that began on Saturday.