Jakarta. Rupiah closed weaker for a second straight session on Monday, ending just shy of the psychologically important Rp 18,000-per-dollar level as investors reacted to Fitch Ratings' warning on Indonesia's macroeconomic vulnerabilities while monitoring geopolitical risks and the Federal Reserve's policy outlook.

The rupiah depreciated 32 points, or 0.18%, to Rp 17,995 per US dollar at Monday's close, from Rp 17,963 in the previous session.

Ibrahim Assuaibi, director of Traze Andalan Futures, said the rupiah remained under pressure amid lingering geopolitical concerns in Eastern Europe and evolving developments in the Middle East.

"Although physical oil supplies continue to recover, geopolitical risks surrounding the Strait of Hormuz remain a key focus. Traders are weighing conflicting signals from Washington and Tehran over the future security and governance of the strategic waterway after US President Donald Trump said Iran had agreed to 'almost everything we need,'" Ibrahim said in a written statement on Monday.

The rupiah also weakened following a weaker-than-expected US nonfarm payrolls report for June, which raised fresh questions over how much room the Federal Reserve has to continue tightening monetary policy.

"However, the dollar's losses remain limited due to persistent uncertainty over the Fed's hawkish policy stance, particularly after the June meeting minutes showed policymakers becoming increasingly supportive of higher interest rates amid elevated inflation," Ibrahim said.

Market attention is now turning to the release of the Federal Reserve's June meeting minutes later this week, although their significance remains uncertain after new Fed Chair Kevin Warsh called for an overhaul of the central bank's public communication strategy.

Domestically, Ibrahim said the rupiah also came under pressure after investors responded negatively to Fitch Ratings' latest assessment highlighting Indonesia's fragile macroeconomic conditions, citing the weakening rupiah, declining foreign exchange reserves, and sustained capital outflows.

"More importantly, Fitch's main concern is the continued erosion of investor confidence due to deteriorating economic governance," he said.

According to Bloomberg data at 4:59 p.m. Jakarta time, the Singapore dollar traded at Rp 13,918, the Japanese yen at Rp 110.91, the Australian dollar at Rp 12,475, and the euro at Rp 20,563.