Jakarta. Rupiah strengthened ahead of the weekend on Friday, closing 21 points higher at Rp 16,707 against the US dollar, after briefly appreciating 25 points earlier in the session. The currency gained amid improving market sentiment following the end of the US government shutdown.

Ibrahim Assuaibi, Director at Traze Andalan Futures, said investors are now shifting their attention to delayed US economic data, which will resume following the restart of federal operations. “The releases could sharpen expectations for a Federal Reserve rate cut in December,” he said.

Ibrahim added that a dovish Fed outlook is weighing on the US dollar and keeping Treasury yields lower, “providing some momentum for the rupiah.”

However, Boston Fed President Susan Collins pushed back against near-term rate-cut expectations, noting that the bar for further easing remains high. Traders subsequently pared back their December rate-cut bets.

The CME FedWatch Tool now shows a 53 percent probability of a December rate cut, down from 62 percent a day earlier.