Jakarta. Rupiah weakened on Wednesday as rising expectations of a US Federal Reserve rate cut and delayed American economic data weighed on sentiment.

The currency closed at Rp 16,664 against the US dollar, down 7 points from Tuesday’s Rp 16,656. The rupiah had earlier slipped as much as 20 points during afternoon trade.

Ibrahim Assuaibi, director at Traze Andalan Futures, said the market was increasingly pricing in a December rate cut by the Fed, especially with pending US data reinforcing dovish expectations.

“Elsewhere, markets are also watching the stalled Russia–Ukraine peace talks, with both sides still carrying out attacks,” Ibrahim said on Wednesday.

US producer prices added to the pressure. The headline Producer Price Index rose 0.3 percent month-on-month in September, matching forecasts after a 0.1 percent drop in August. The Core PPI, which excludes food and energy, climbed 0.2 percent, slightly below expectations of 0.3 percent.

Recent dovish signals from Fed officials have prompted traders to raise bets on easing, reversing hawkish recalculations seen earlier this month. According to the CME FedWatch Tool, markets now place the probability of a December rate cut at around 80 percent.

However, the outlook remains uncertain as key inflation and labor data will only be released after the Fed’s December 9–10 meeting.

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