Jakarta. Rupiah appreciated against the US dollar on Thursday after three consecutive days of losses, as both global sentiment and domestic policy developments lent support to the local currency.

The rupiah closed 16 points stronger at Rp 16,701 per dollar on Thursday afternoon, rebounding from Wednesday’s close of Rp 16,717. Earlier in the session, the currency briefly gained 15 points before settling at the final rate.

The recovery came as investors assessed signals from the US Federal Reserve, with growing market speculation that the Fed may hold off on cutting interest rates in December. The view strengthened after Chair Jerome Powell cautioned that a rate cut in December was “not a certainty.”

“Market participants are now turning to private-sector data for cues on the US economy, as the ongoing government shutdown, now entering its 36th day, has delayed the release of key official data,” said Ibrahim Assuaibi, Director at Traze Andalan Futures, on Thursday.

He added that strong US economic data had already tempered traders’ expectations for a December rate cut, which indirectly supported the rupiah. Sentiment also improved following news that the US Department of Transportation plans to cut flight operations by up to 10 percent at 40 major airports, further highlighting the impact of the prolonged shutdown.

On the domestic front, the rupiah found additional support from the government’s announcement of plans to deliberate the long-awaited Rupiah Redenomination Bill. The proposed legislation is part of four key regulatory initiatives under Finance Ministry Regulation No. 70/2025, outlining the ministry’s strategic roadmap for 2025–2029.

If the legislative process proceeds smoothly, the bill is expected to be finalized by 2026. “Redenomination is not a new topic. The government had previously stated in 2023 that such a move was not feasible at the time due to economic uncertainties,” Ibrahim said.