The Indonesian rupiah firmed toward IDR 16,760 per dollar on Tuesday, snapping a three-day losing streak as the dollar index hovered near a two-month low ahead of the Fed’s December meeting minutes. Thin year-end trading amplified the move, while sentiment was supported by Bank Indonesia’s steady policy stance. The central bank left rates unchanged for a third straight meeting in mid-December after cutting 150bps over the past year, underscoring a cautious approach to growth support. Focus now shifts to December inflation data due later this week, expected to ease from an 18-month high and remain within BI’s 1.5%–3.5% target, reducing near-term policy risks. Indonesia is also projected to post a trade surplus for a 67th consecutive month in November, highlighting resilient exports and offering a buffer for the currency. Despite the rise, the local currency remains one of Asia’s weakest performers this year, down about 4.3%, as investor sentiment stays weighed by BI’s dovish bias.