Rupiah seen in Pressures as US Treasury Yield Rising


The rupiah exchange rate has the potential to experience pressure with the return of the 10-year tenor US government bond yields rising to above 1.60%.

"This morning the yield is in the range of 1.61%. This increase in yield could trigger the strengthening of the US dollar," said money market observer Ariston Tjendra in Jakarta on Wednesday (2/6).

He explained that the increase in yield was in line with expectations of rising inflation in the US. Inflation indicator data released last Friday showed a year-on-year increase of 3.1% in April.

On the other hand, Indonesia's inflation data for the month of May will be released today, with analyst consensus rising 1.67% year on year.

The actual figure in line with expectations may withstand the weakening of the rupiah because it shows Indonesia's inflation condition is still relatively stable.

Market optimism for the world's economic recovery could also help curb the


Penulis : Widya