The Indonesian rupiah slid to around IDR 16,750 per dollar on Monday, extending prior weakness as the U.S. dollar index hit a two-week top. Investors weighed the impact of U.S. military action in Venezuela while positioning ahead of key U.S. economic data this week. Sentiment remained pressured by Bank Indonesia’s dovish stance after the board kept the key rate at 4.75% for a third meeting in December, following 150bps of cuts over the past year. Inflation showed signs of firming in December, with headline inflation notching a 20-month high of 2.92% and core inflation hitting a seven-month peak, though both stayed within BI’s 1-1/2–3-1/2% target range, limiting urgency for tightening. On the trade front, November’s trade surplus undershot consensus as exports shrank the most in nearly two years amid weak global demand and higher U.S. tariffs. Still, losses were partly cushioned by forex reserve data, which rose to a three-month high in November, marking a second straight monthly gain.