Rupiah May Weaken on Concerns over Economic Slowdown
Jakarta - The rupiah exchange rate on Thursday (28/10) may still experience pressure against the US dollar triggered by market concerns about the economic slowdown.
Money Market Observer Ariston Tjendra said the market was worried about the economic slowdown due to rising inflation due to supply constraints and rising energy prices.
"An increase in inflation could trigger the world's central banks to tighten their monetary policies, which could actually suppress the rate of economic growth," he said in Jakarta on Thursday (28/10).
The market may also anticipate the US tapering policy, which may be announced after the US Central Bank's monetary policy meeting on November 4.
On the other hand, the decline in the yield of US government bonds, especially the tenor of 10 years and below the 1.6% level, could help the weakening of the rupiah not be too profound.
As for the potential for weakening today to the range of 14,