Jakarta. Rupiah returned to positive territory at the close of Wednesday’s trading, strengthening against the US dollar amid lingering global uncertainties.

The local currency ended the session up 46 points, after earlier gaining as much as 55 points to Rp 16,722 per dollar, compared with the previous close of Rp 16,758.

Ibrahim Assuaibi, director of Traze Andalan Futures, said the rupiah’s appreciation came despite unresolved global pressures, including escalating trade tensions between the United States and several of its strategic partners, such as the European Union, Canada, and South Korea.

“The escalation of the trade war, which is now unfolding between the US and South Korea, has spread to financial markets. US President Donald Trump’s threat to impose a 25% tariff on goods from Seoul has weakened the US dollar,” Ibrahim said in a written statement on Wednesday.

The rupiah also drew support from rising concerns over a potential US government shutdown, as lawmakers face a funding deadline on Jan. 30, 2026.

Additional support came after Trump said he was close to naming his choice for the next chair of the Federal Reserve, who would succeed Jerome Powell, and suggested that interest rates would fall under new leadership at the central bank.

On the geopolitical front, the rupiah strengthened amid renewed US-Iran tensions, following reports that the US Navy aircraft carrier USS Abraham Lincoln and its accompanying warships had arrived in the Middle East, stoking concerns over a possible escalation with Iran.

From a global monetary perspective, the rupiah avoided further pressure as markets turned their focus to the Federal Reserve’s policy decision due on Thursday.

“Attention will then shift to Chair Jerome Powell’s post-meeting press conference at 02:30 a.m. Jakarta time for fresh guidance on the future path of monetary policy, with traders currently pricing in around two interest rate cuts by the end of this year,” Ibrahim said.

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