The Indonesian rupiah dipped for a fifth straight session on Thursday, edging closer to IDR 16,800 per dollar amid a firm dollar index, as traders priced in nearly a 90% chance the Fed will leave rates unchanged at its upcoming meeting. Fresh data showing Indonesia’s forex reserves hit a nine-month high in the final month of 2025 offered little support, with markets focusing instead on Bank Indonesia’s dovish stance even after a cumulative 150bps of rate reductions between September 2024 and September 2025 to support growth. Meanwhile, inflation readings signaled rising cost pressures in December following the late-November Sumatra major disaster, though price growth remained within the central bank’s target corridor, reducing urgency for tightening. External headwinds also persisted, with exports losing momentum, particularly in key commodities such as coal. Investors now vigilantly await December consumer sentiment data due Friday and retail sales figures next week for further cues.