# Indonesian Rupiah: Softer inflation but currency risks linger – MUFG

> Indonesia's October CPI came in below expectations, with headline inflation easing to 3.23% year on year and core inflation slowing to 2.56%. MUFG notes the rupiah remains weak above 18,000 per dollar and the 10-year bond yield rose to 7.7%, and says a Bank Indonesia rate hike cannot be ruled out if currency pressure intensifies.

- Date: 2026-11-03 · published 2026-11-04T00:15:10.345Z
- Category: macro · region Indonesia · magnitude low
- Page: https://feedsoft.ai/events/78647-indonesian-rupiah-softer-inflation-but-currency-risks-linger-mufg
- Commodities: [Indonesian Rupiah (IDR per USD)](https://feedsoft.ai/c/USDIDR.md)

## Why it matters

A weak rupiah and possible BI tightening would raise the cost of imported feed ingredients for Indonesian buyers, while the dollar strength is a modest headwind for dollar-denominated grain and meal prices.

## Read by commodity

- USDIDR: bullish ▲

## Sources

- fxstreet.com: https://www.fxstreet.com/news/indonesian-rupiah-softer-inflation-but-currency-risks-linger-mufg-202611032126
- mitrade.com: https://www.mitrade.com/au/insights/news/live-news/article-6-2226865-20261104

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Data from Feedsoft AI (https://feedsoft.ai/). For information only; not investment advice.