Jakarta. Rupiah weakened again on Friday as global sentiment turned cautious following mixed signals from US inflation data and lingering geopolitical risks.

The currency closed down 27 points against the US dollar at Rp 16,750 on Friday afternoon, reversing an earlier intraday gain of 5 points from the previous close of Rp 16,723.

Pressure on the rupiah followed the release of US consumer price data for November, which showed inflation continuing to ease but not enough to convince markets that the Federal Reserve would move swiftly toward interest rate cuts. Data from the US statistics agency indicated that core inflation, which strips out food and energy prices, rose at an annual pace of around 2.6%, while headline inflation stood slightly higher at about 2.7% year on year.

Despite the softer inflation trend, investors remained cautious as US labor market conditions stayed relatively firm. Traze Andalan Futures Director Ibrahim Assuaibi said traders were skeptical that easing price pressures alone would prompt near-term policy easing, given resilient employment indicators, including the latest initial jobless claims data.

Market focus later shifted to the release of the Fed’s preferred inflation gauge, the core personal consumption expenditures (PCE) index, along with the final reading of the University of Michigan’s consumer sentiment index.

The rupiah was also weighed down by geopolitical developments. Attention centered on comments by US President Donald Trump regarding the Russia-Ukraine conflict ahead of planned talks between US and Russian officials over the weekend. Analysts warned that any further measures targeting Russian oil exports could pose greater supply risks to global markets than potential US actions against Venezuelan tanker shipments.

Additional uncertainty stemmed from tensions in the Caribbean, as questions persisted over how the US would enforce Trump’s announcement to block sanctioned tankers entering and leaving Venezuela, which contributes roughly 1% to global oil supply.