The Indonesian rupiah strengthened a bit to around 16,610 per dollar on Tuesday after falling to as low as 16,630 the previous day, supported by a weaker greenback as optimism over a potential US-China trade deal reduced safe-haven demand for the dollar. Meanwhile, the Federal Reserve is widely expected to cut interest rates by 25 basis points on Wednesday, with investors watching for clues on whether another reduction could come in December. Domestically, Bank Indonesia unexpectedly paused its aggressive rate-cutting cycle last week to focus on improving policy transmission. Although the central bank has lowered its benchmark rate by 150 basis points since September last year, lending rates have fallen by only 15 basis points, a gap Governor Perry Warjiyo linked to depositors demanding higher returns. Meanwhile, annual inflation rose to a 16-month high of 2.65% in September but remained within Bank Indonesia’s 1.5%–3.5% target range, helping sustain market confidence.