The Indonesian rupiah slipped to around 16,600 per dollar on Monday, its lowest since late April, after Bank Indonesia unexpectedly cut its key rate by 25bps to 4.75% last week. It was the sixth reduction since September 2024, lowering borrowing costs by 150bps to the weakest since late 2022. Governor Perry Warjiyo said the rupiah’s movement against the dollar was still under control, adding that the central bank would continue interventions to stabilise the currency. Still, the rupiah has fallen about 3% this year, weighed by domestic financial concerns and deadly protests that left 10 people dead. Indonesia’s 2026 budget plan was revised less than two weeks after new Finance Minister Purbaya Yudhi Sadewa replaced Sri Mulyani Indrawati, reflecting higher spending, modestly stronger revenues, and a looser fiscal stance, with the deficit nearing the 3% of GDP cap. Elsewhere, the dollar index rose above 97.7 for a fourth session as traders awaited Fed signals and key US inflation data.