The Indonesian rupiah strengthened to around 16,630 per dollar on Friday, swinging from a slight dip in the prior session as the dollar index hovered near two-month lows. The U.S. Fed’s third rate cut of the year, accompanied by a less hawkish outlook than markets expected, boosted demand for emerging-market currencies. Bets also grew that Bank Indonesia may keep its policy rate at next week’s final meeting of the year, leaving room to resume easing in 2026. Meanwhile, Indonesia’s retail sales are projected to extend gains in November after October’s acceleration, lifted by stronger holiday spending. On the trade front, Jakarta seeks to finalize tariff negotiations with the U.S. by year-end following talks between chief negotiator Airlangga Hartarto and U.S. Trade Representative Greer to advance July’s preliminary deal. However, the rupiah remains down about 3.5% year-to-date, pressured by renewed inflation risks tied to logistics disruptions after the recent disaster in Sumatra.