October 10, 2025 | 07:35 pm
TEMPO.CO, Jakarta - The rupiah closed slightly weaker against the US dollar on Friday, depreciating by 2 points or 0.01 percent to Rp16,570 per US dollar, compared to Rp16,568 the previous day.
Bank Indonesia’s Jakarta Interbank Spot Dollar Rate (JISDOR) also slipped, settling at Rp16,585 per US dollar from Rp16,534 on Thursday.
Currency analyst and Director of Laba Forexindo Berjangka, Ibrahim Assuabi, said the rupiah’s weakness was driven by market anxiety over the prolonged United States government shutdown, which has entered its ninth day.
“The US government shutdown is still ongoing, and the latest Federal Reserve meeting minutes indicate that policymakers are leaning toward supporting the weakening labor market,” Ibrahim said in a written statement on Friday, October 10, 2025.
Minutes from the Federal Open Market Committee (FOMC) revealed that most Fed officials favor a rate cut by the end of 2025, although some remain cautious due to persistent inflationary pressures.
Ibrahim added that the extended shutdown has disrupted the release of key US economic indicators, including the Nonfarm Payrolls (NFP) report that was scheduled for Friday, October 3.
“The lack of visibility on the US economy makes it harder for the Federal Reserve to determine its next policy direction and reinforces market expectations of an imminent rate cut,” he said.
According to CME FedWatch, markets now price in nearly a 100 percent probability of a rate cut in October, with another reduction expected in December. These expectations, Ibrahim noted, could put downward pressure on US Treasury yields and weaken the US dollar.
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