The Indonesian rupiah strengthened to around 16,700 per US dollar on Wednesday, snapping a six-session losing streak after the central bank held its benchmark interest rate steady at 4.75%, as widely expected.

Bank Indonesia's decision reflected confidence that inflation will remain within its 2.5% ± 1% target range, while also continuing efforts to stabilize the currency amid global uncertainty and improve policy transmission. Governor Perry Warjiyo indicated that there is still room for further rate cuts in the future but emphasized that any moves would be data-dependent.

The hold follows a pause in October, which came after 150 basis points of rate cuts over the past year to support economic growth. The monetary stance comes as President Prabowo Subianto aims to lift economic growth to 8% during his term, compared with the pre-pandemic average of about 5%.

Despite today's rebound, the rupiah remains down approximately 3.8% against the US dollar this year. The currency faces headwinds from a broadly stronger dollar, with the dollar index hovering near 99.6 as fading expectations of a near-term Federal Reserve rate cut persist amid sticky US inflation.