Jakarta. Rupiah is expected to edge higher on Thursday, Oct. 30, as traders anticipate the US Federal Reserve’s rate decision, though volatility is likely to persist, according to currency analyst and Director of Traze Andalan Futures Ibrahim Assuaibi.

“For tomorrow’s trade, the rupiah is expected to move in a volatile range but end stronger between Rp 16,570 and Rp 16,620 per US dollar,” Ibrahim said in a written statement on Wednesday.

The local currency closed slightly weaker by 9 points on Wednesday at Rp 16,617 per dollar, after briefly losing 25 points earlier in the session.

The movement reflected cautious sentiment ahead of the Fed’s two-day policy meeting, widely expected to deliver a second consecutive 25-basis-point rate cut following September’s decision.

“The Fed’s rate policy will continue to shape the rupiah’s trajectory,” Ibrahim noted.

Adding pressure, geopolitical tensions resurfaced after US President Donald Trump imposed new sanctions on Russia over Ukraine, targeting major oil producers Lukoil and Rosneft. Trump also hinted at a possible 20 percent tariff cut on Chinese imports, particularly fentanyl precursors, ahead of his summit with Chinese President Xi Jinping in South Korea.

Domestically, the rupiah faced additional headwinds as Japanese rating agency Rating and Investment Information, Inc. (R&I) reaffirmed Indonesia’s sovereign credit rating at BBB+ with a stable outlook on October 24.

The agency cited stable inflation, a low debt ratio, and prudent fiscal and monetary management, while forecasting 5 percent GDP growth in 2025, in line with Bank Indonesia’s projection.