Jakarta. The rupiah softened on Wednesday afternoon as investors braced for the Federal Reserve’s rate decision and guidance for 2026. The currency closed 13 points lower against the US dollar at Rp 16,689, after briefly weakening by 15 points from Tuesday’s Rp 16,676 finish.

Traze Andalan Futures Director Ibrahim Assuaibi said markets widely expect a 25-basis-point cut, but policymakers remain divided, keeping sentiment cautious. “All eyes are on Chair Jerome Powell’s comments, especially his forward guidance for 2026,” Ibrahim said in a written statement. “

Market players are looking for clues on how the Fed will balance economic support with inflation control.” Ibrahim added that Powell’s remarks and the US economic projections due later Wednesday could sway the rupiah.

The currency also weakened despite easing geopolitical tension in Europe, after Ukrainian President Volodymyr Zelenskiy signaled progress on a refined peace proposal to the US and European partners.

On the domestic front, sentiment turned softer after Bank Indonesia highlighted five global risks to monitor, with financial-market vulnerabilities stemming from aggressive non-bank institutions emerging as a key concern for 2026 and beyond.

Add as a preferred source on Google +