The rupiah's performance during the first quarter of 2025 was the worst in Asia amid a strengthening trend in most regional currencies against the US dollar.

Not only against the US dollar, the rupiah's value has also plummeted against other countries' currencies, with a significant weakening, making the rupiah one of the currencies that is increasingly worthless in the international world because its value is getting cheaper.

The rupiah started the year at around Rp16,000, specifically at Rp16,195/US$ on the first trading day of 2025.

Global market turbulence, primarily triggered by developments surrounding US tariff policy under President Donald Trump, as well as the outlook for the Federal Reserve's benchmark interest rate, dominated the rupiah's movement in the first quarter of 2025.

However, the rupiah isn't just weighed down by Trump's trade war. Domestic factors are also adding to the pressure on the Indonesian currency, causing it to perform worse than other Asian currencies.

Source: Bloomberg