The Indonesian rupiah weakened to around IDR 16,780 per dollar on Monday, down for a third session amid thin year-end trading. Sentiment stayed fragile as Bank Indonesia’s dovish bias weighed on the currency, even after the board held the key rate at 4.75% for a third straight meeting in mid-December, following a total 150bps cuts over the past year. Officials signaled further easing may be needed to aid growth, after a major disaster in Sumatra. Caution also grew ahead of key data releases this week, including December inflation and November trade prints. For 2025, the rupiah ranked among Asia’s weakest currencies, down about 4.3%. On policy, the central bank will retire Jakarta Interbank Offered Rate and replace it with the Indonesian Overnight Index Average (Indonia) from Jan. 1 to boost transparency in the money market and align with global standards. Meantime, the dollar index stayed subdued, nearing its lowest since early October, as markets priced in U.S. rate cuts next year.