Jakarta. The rupiah closed 3 points weaker against the US dollar at Rp 16,628 on Wednesday afternoon, extending losses after slipping 10 points the previous day.

Ibrahim Assuaibi, Director of Traze Andalan Futures, said the currency’s depreciation continues to be driven by mounting expectations that the US Federal Reserve will cut interest rates at its policy meeting later this month.

CME’s FedWatch tool now shows markets assigning around a 90 percent probability of a rate cut at the December 9–10 meeting.

The rupiah also softened as investors awaited the release of US private-sector employment data (ADP) for November and the delayed US Personal Consumption Expenditures (PCE) Price Index for September, both of which the Fed monitors closely.

Ibrahim added that speculation over a possible leadership change at the Federal Reserve is adding to market uncertainty. Reports suggest that Kevin Hassett, a White House economic adviser known for favoring lower interest rates, has emerged as a leading candidate to replace current Fed Chair Jerome Powell.

“This possibility strengthens expectations of a more dovish monetary stance under new leadership,” Ibrahim said, adding that such developments could affect the rupiah in the coming weeks.

On the domestic front, the rupiah faced additional pressure after the Organisation for Economic Co-operation and Development (OECD) assessed that Bank Indonesia (BI) still has room to ease monetary policy, potentially lowering its benchmark rate by up to 50 basis points.