Jakarta. Indonesia’s rupiah opened weaker against the US dollar on Thursday morning, pressured by slowing economic growth. The currency depreciated by 16 points, or 0.1 percent, to Rp 16,308 per dollar at 9:07 a.m. Jakarta time, according to Bloomberg data. On Wednesday, the rupiah had strengthened 58 points against the greenback.

Meanwhile, the US dollar index edged down 0.02 points to 107.5, and the 10-year US Treasury yield dropped 18 basis points to 4.42 percent.

Indonesia’s economy grew by 5.03 percent year-on-year in 2024, with fourth-quarter growth at 5.02 percent. The full-year growth was primarily driven by household consumption, though it fell short of earlier expectations.

“These figures reflect a slower growth trajectory compared to previous projections,” currency analyst at Laba Forexindo Berjangka, Ibrahim Assuaibi, said.

Indonesia faces mounting economic challenges in 2025 following a slowdown in late 2024. Third-quarter growth fell to 4.95 percent year-on-year, down from over 5 percent in the first two quarters, before rebounding to 5.02 percent in the fourth quarter.

“Household purchasing power is weakening, the middle class is shrinking, and sectoral productivity continues to decline,” Ibrahim added.

The rupiah’s depreciation comes as the US dollar weakened against several global currencies amid easing concerns over trade wars that could fuel inflation. The Japanese yen reached an eight-week low on Thursday, while the dollar hovered near a one-month low against the British pound.

The yen gained additional support from rising expectations of a Bank of Japan (BOJ) rate hike after a central bank official suggested further increases were needed. This followed strong wage growth data from Japan.

The pound remained steady ahead of the Bank of England’s anticipated 25-basis-point rate cut during its policy meeting.

Previously, the dollar index had surged to a three-week high of 109.88 on concerns that former US President Donald Trump might impose a 25 percent tariff on imports from Mexico and Canada. Both countries received temporary exemptions, though a 10 percent tariff on Chinese imports remained in place.