Jakarta. Rupiah retreated on Thursday as a wider state budget deficit and cautious signals from the Federal Reserve dragged sentiment.

The rupiah ended the session at Rp 16,734, down 26 points against the US dollar, after earlier slipping as much as 40 points from Wednesday’s Rp 16,708 close.

The move came after the Finance Ministry reported that the state budget deficit widened to Rp 479.7 trillion as of October 31, up from Rp 371.5 trillion in September, or 1.65 percent of GDP.

Rupiah also softened after Bank Indonesia projected the 2025 current account to range between a 0.1 percent surplus and a 0.7 percent deficit, reflecting a still-resilient balance of payments supported by low deficits and improving capital inflows.

“The balance of payments is expected to remain durable this year,” said Traze Andalan Futures Director Ibrahim Assuaibi, noting BI’s view that improving economic prospects could bolster inflows.

From abroad, the rupiah faced added pressure as Federal Reserve officials signaled growing doubts about a December rate cut. The latest minutes showed policymakers split between lingering inflation risks and signs of a weakening labor market.

“Traders are dialing back expectations for further easing,” Ibrahim said, adding that this could weigh on the rupiah’s near-term trajectory.

Markets are now watching the delayed US September jobs report, expected to show a 50,000 increase in payrolls after 22,000 in August, for fresh cues on the Fed’s rate path.