The Indonesian rupiah weakened slightly to about IDR 17,850 per U.S. dollar on Tuesday as investors stayed cautious ahead of Bank Indonesia's policy decision due Wednesday. The central bank is widely expected to leave interest rates unchanged under acting Governor Destry Damayanti after raising rates by a cumulative 100 basis points since May. Attention is also on Q2 current account figures after the Q1 deficit widened to its largest level since 2019, reflecting softer trade performance. Some pressure on the currency was tempered by fiscal optimism after President Prabowo pointed to resilient GDP growth next year and the government pledged to build a fiscal buffer and strengthen investor confidence. External conditions offered limited relief as the dollar index fell to a near two-month low, with traders scaling back expectations for additional Federal Reserve tightening following weaker U.S. economic data.