Jakarta. Rupiah weakened on Tuesday, closing 40 points lower against the US dollar at Rp 16,694, after briefly sliding by 55 points earlier in the day from Monday’s close of Rp 16,654.

The local currency’s decline came as the US Senate passed a bill to reopen government funding, officially ending the American government shutdown.

“The end of the shutdown paves the way for the US government to release key economic data, which will offer the market fresh clues about the country’s economic direction,” said Traze Andalan Futures Director Ibrahim Assuaibi in a statement on Tuesday.

He added that the move could strengthen the US dollar, putting additional pressure on the rupiah.

The rupiah also traded under pressure amid persistent expectations that the Federal Reserve may cut interest rates in December, even as global economic uncertainty remains high.

External sentiment weighed further as geopolitical tensions in Europe escalated, following Ukraine’s drone strikes on Russia’s energy infrastructure that prompted retaliatory attacks from Moscow.

Domestically, the rupiah slipped despite the Finance Ministry confirming that redenomination, a plan to remove three zeros from the rupiah, will not take place soon, including in 2026.

Finance Minister Purbaya Yudhi Sadewa reiterated that the redenomination policy remains under the authority of Bank Indonesia, although it remains part of the government’s broader plan to complete the legal groundwork by 2026–2027.

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