Jakarta. Rupiah edged lower against the US dollar at Wednesday's opening trade, paring gains from the previous session as investors awaited the Federal Reserve's first policy decision under Chair Kevin Warsh.

Bloomberg data showed the rupiah weakening 11 points, or 0.06%, to Rp 17,736 per US dollar in the spot market as of 9:05 a.m. Jakarta time. The dollar index slipped 0.06% to 99.524.

The Indonesian currency had closed sharply higher in the previous session, gaining 152 points to Rp 17,708 per US dollar.

The US dollar weakened ahead of the Federal Reserve's closely watched policy meeting, the first under Warsh's leadership.

The Fed began its two-day meeting on Tuesday and is expected to announce its interest rate decision on Wednesday. Warsh, who was nominated by President Donald Trump, faces mounting pressure from the White House to lower borrowing costs to support economic growth despite persistent inflation concerns.

Markets broadly expect the central bank to leave its benchmark interest rate unchanged.

The dollar index eased to 99.53, giving up part of its recent safe-haven gains after details emerged of a temporary agreement between the United States and Iran aimed at ending the conflict in the Middle East.

The Japanese yen saw little benefit from the weaker dollar and remained under pressure despite the Bank of Japan's previously signaled interest rate hike. The yen last traded at 160.43 per US dollar, keeping market participants alert for possible intervention by Japanese authorities.

Elsewhere, the euro was steady at $1.1611, while the British pound was little changed at $1.3430. The Australian dollar held firm at $0.7066.

Investors are expected to closely examine the Fed's policy statement, updated economic projections, and Warsh's first press conference for clues on the future direction of monetary policy, particularly as officials remain wary of inflation risks, according to CNBC International.

Erik Weisman, chief economist and portfolio manager at MFS Investment Management, said the Fed is likely to maintain a neutral policy stance while Warsh seeks to build consensus within the committee before signaling any major shift in monetary policy.

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