The Indonesian rupiah strengthened to just below 16,700 per dollar on Monday, after slipping past 16,730 in the previous two sessions. The rebound followed back-to-back Bank Indonesia rate holds last week, signaling confidence that inflation will remain manageable within the 2.5% ±1% target band this year and next. The decision also aimed to stabilise the currency and support foreign portfolio inflows, even as the dollar index stayed near a six-month high after New York Fed President John Williams said a near-term US rate cut remains possible due to risks in labor market. Indonesia’s current account swung to a surplus in Q3, its first in 2-1/2 years and the highest since Q3 2022, driven by a surge in the non-oil trade surplus and stronger secondary income, further lifting the rupiah. Despite the improvement, the rupiah is still down about 3.8% against the dollar year-to-date, as the central bank indicated there is more room for further easing despite 150bps of cuts over the past year.