Jakarta - The rupiah exchange rate on Thursday (21/10) is likely to experience pressure due to the continued increase in the yield of US government bonds on expectations of changes in monetary policy in the country.

"This morning the 10-year tenor yield looks to have penetrated above the 1.67 percent range. This is the highest level since May 20, 2021," said Money Market Observer Ariston Tjendra in Jakarta.

He added that the market focus on rising inflation in the world and the US recently due to the energy crisis had kept US bond yields high.

Inflation that continues to push up could encourage central banks to change their policies to become more stringent, as has been done by the Central Banks of New Zealand and South Korea.

Other central banks are likely to follow, such as the US, UK, and European central banks.

Meanwhile, the rupiah has the potential to weaken to the range of 14,100 per US dollar.

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