BI Intervenes as Rupiah Hits Rp 17,900 Amid Rising Treasury Yields

Bank Indonesia (BI) is intervening in financial markets to support the rupiah after it weakened towards Rp 17,900 against the US dollar. The central bank's executive director and head of the Monetary and Securities Asset Management Department, Erwin Gunawan Hutapea, attributed the rupiah's decline to several factors.

The surge in US Treasury yields, which rose to its highest level since 2007 at 5.11%, is one of the main drivers behind the rupiah's weakening. Additionally, oil prices above $100 a barrel due to renewed geopolitical tensions are also adding pressure on the currency.

Erwin noted that expectations of tighter US monetary policy amid concerns over global inflation and the fiscal outlook have contributed to the strengthening of the US dollar index. This, in turn, has affected the rupiah's value.