The Indonesian rupiah firmed below IDR 16,700 per dollar on Wednesday, rebounding from a dip near 16,820 in the prior session, amid broad dollar weakness. The dollar index fell to a four-year low after President Trump downplayed concerns over its decline, while policy risks in Washington kept the greenback under strain. Sentiment improved further after Bank Indonesia Governor Perry Warjiyo said recent rupiah weakness did not reflect deteriorating fundamentals but stemmed from short-term technical factors and global headwinds. He noted the rupiah should recover gradually, helped by manageable core inflation, and pledged to stabilize the currency through spot and forward interventions alongside liquidity operations. Gains were capped, however, after Warjiyo signaled scope for further easing this year, even after 150bp of total cuts since September 2024, which brought the key rate to 4.75%. Caution also grew ahead of key domestic releases next week, including inflation, trade, and Q4 GDP.