Jakarta. The rupiah slipped 0.25 percent to close at Rp 15,946 against the US dollar on Tuesday, as markets awaited signals of an interest rate cut from the Federal Reserve.

“Several Fed officials are scheduled to speak in the coming days, most notably Chair Jerome Powell on Wednesday. His comments will come just weeks before the Fed's final meeting of the year,” Laba Forexindo Berjangka's currency analyst Ibrahim Assuaibi said in a note on Tuesday.

The Federal Reserve is widely expected to cut its benchmark interest rate by 25 basis points in its December meeting. However, uncertainty remains about the long-term direction of interest rates, given persistent signs of inflation and the resilience of the US labor market.

Key economic data due later this week, including the US non-farm payrolls (NFP) report for November, could play a significant role in shaping the Fed’s rate outlook.

Fed Governor Christopher Waller, known for his influential policy stance, indicated support for another rate cut this month. In contrast, Atlanta Fed President Raphael Bostic suggested that the central bank would closely monitor upcoming labor data before deciding.

“Investors are bracing for a potentially strong NFP report as the effects of recent storm-related disruptions subside. Longer-term uncertainty over rates is also influenced by expectations surrounding US President-elect Donald Trump’s policy agenda,” Ibrahim said.

Trump, who is set to assume office in January, is expected to introduce expansionary and protectionist policies that could drive both inflation and interest rates higher.

Meanwhile, in China, upbeat business activity data signaled early success from the government’s recent stimulus measures. However, traders are awaiting further policy cues from two major political meetings in December. Concerns over deteriorating U.S.-China trade relations could weigh on China’s economy, potentially dampening demand for commodities.

On the domestic front, Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) weakened to Rp 15,950 on Tuesday, down from Rp 15,905 a day earlier.

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