The Indonesian rupiah weakened to around 16,650 per dollar on the first trading day of November after holding relatively steady last week. The decline came amid a stronger US dollar, which hovered near a three-month high after the Trump–Xi summit last week aimed at stabilizing bilateral relations. Meanwhile, Federal Reserve Chair Jerome Powell warned that another rate cut in December was not assured amid the ongoing US government shutdown. Domestically, Bank Indonesia signaled room for further easing, citing expectations that inflation would remain moderate through 2026 despite October’s temporary rise to a 1-1/2-year high of 2.86%, which stayed within BI’s 1.5%–3.5% target range. The central bank had paused its aggressive rate-cut cycle in October after lowering its benchmark rate by 150 basis points since September 2024. Meanwhile, strong September trade data cushioned the retreat in local currency, with exports rising 11.4% year-on-year and imports growing at a slower 7.17%.