The Indonesian rupiah strengthened slightly against the US dollar on Wednesday, closing at Rp18,073.
The modest gain reflects a broader trend of cautious optimism among emerging-market investors as they position themselves ahead of the US Federal Reserve's upcoming policy announcement.
Market participants are adopting a wait-and-see approach, with trading volumes remaining subdued as traders digest the implications of the impending FOMC decision.
The rupiah's movement mirrors similar patterns seen in other regional currencies, including the Malaysian ringgit, which also posted gains against the greenback earlier in the week.
The Federal Reserve's two-day policy meeting is set to conclude with a rate decision and updated economic projections.
Markets are closely watching for signals on the future path of interest rates, particularly regarding the timing and magnitude of potential cuts.