Jakarta. Rupiah continued its downward trend on Tuesday, weakening by 32 points to close at Rp 16,708 against the US dollar, after briefly sliding by as much as 65 points earlier in the day. The local currency previously ended Monday’s session at Rp 16,676.

Traze Andalan Futures Director Ibrahim Assuaibi said the rupiah’s decline came as markets scaled back expectations of a near-term rate cut by the US Federal Reserve.

“Last week, Jerome Powell signaled that the central bank has not committed to further easing, saying a move in December is not a certainty,” Ibrahim said in a written statement on Tuesday.

From the domestic front, the rupiah was also weighed down by higher-than-expected inflation data. The Central Statistics Agency (BPS) reported inflation rose 0.28 percent month-on-month in October 2025, up from 0.21 percent in September. On an annual basis, inflation accelerated to 2.86 percent year-on-year, compared with 2.65 percent the previous month, bringing year-to-date inflation to 2.10 percent.

Global sentiment also dampened risk appetite, as the US government shutdown stretched into its 33rd day with no resolution in sight. Meanwhile, trade tensions resurfaced after US President Donald Trump said that Nvidia’s latest Blackwell chips would be reserved for domestic use, a move that reignited concerns over supply chain disruptions and China’s tech sector growth.

“These comments have made markets nervous again, sparking renewed worries over supply chains and technology sector growth in China, which in turn affected the rupiah,” Ibrahim added.

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