Jakarta. The rupiah slipped against the dollar on Monday, extending this year’s losses as fiscal concerns and a stronger greenback added to pressure on the Indonesian currency.

Bloomberg data showed the rupiah closed at Rp 16,610.5, down 0.06 percent from the previous session. The currency has depreciated 3 percent so far this year, hovering near the weaker end of its 52-week range of 15,065 to 17,224.

Bank Indonesia Governor Perry Warjiyo told lawmakers that the rupiah’s moves remain “under control” as the central bank continues to intervene in the spot, non-deliverable forward, and bond markets. “We are committed to stabilizing the rupiah while maintaining growth momentum,” Perry said at a parliamentary hearing on Monday.

The central bank cut its benchmark interest rate by 25 basis points to 5 percent last week, lowering the deposit facility to 4.25 percent and the lending facility to 5.75 percent. Since September 2024, BI has eased policy by a total of 150 basis points to support growth, even as investors raise questions about the government’s fiscal discipline.

“The rupiah remains under pressure from loose fiscal measures and widening deficit risks,” said Lukman Leong, analyst at Doo Financial Futures in Jakarta. “The government’s Rp 200 trillion ($12 billion) fund placement in state-owned banks, Rp 16.23 trillion stimulus program, and the nationwide Free Nutritious Meal scheme have widened the fiscal gap.”

Markets are also adjusting to the higher deficit outlook in the 2026 budget, with the fiscal shortfall now projected at Rp 689.1 trillion, or 2.68 percent of GDP, compared with an earlier draft of Rp 638.8 trillion, or 2.48 percent of GDP.

Globally, the dollar strengthened after the Federal Reserve signaled a more hawkish stance in its latest meeting, weighing on emerging-market currencies.

Lukman expects BI to continue its “triple intervention” to limit volatility, forecasting the rupiah to trade between 16,500 and 16,650 per dollar in the near term.