The Indonesian rupiah slipped to around IDR 16,780 per dollar on Wednesday, marking a fourth straight session of losses, weighed by a firm dollar index ahead of fresh US economic data in the coming days that could shape expectations for Fed policy. Caution also set in as key domestic indicators drew closer, with December forex reserves and consumer sentiment due later this week, followed by retail sales next week. Recent data pointed to rising cost pressures, as headline inflation rose to a 20-month high of 2.92% in December and core inflation reached a seven-month peak. However, both readings stayed within Bank Indonesia’s target range, tempering the urgency for policy tightening. In fact, the central bank has signaled room for further policy easing this new year to aid growth following the Sumatra disaster, after delivering 150bps of rate cuts over the past year. External headwinds also pressured sentiment, with export momentum weakening, particularly in key commodities such as coal.