Bank Indonesia intervened in the foreign exchange market after the rupiah fell to a new low against the US dollar.
The move was implemented through several instruments including offshore and domestic non-deliverable futures (NDFs), spot transactions and purchases of government bonds in the secondary market. The move is aimed at controlling volatility and stabilizing the country's currency.
The rupiah reportedly fell around 0.2% to 17,422 per dollar, hitting an all-time low. The fall reflected continued pressure on regional currencies in an uncertain global environment.
Market sentiment was also affected by a surge in oil prices following the Iran conflict, which prompted investors to reduce holdings of the country's assets exposed to energy cost pressures. Other currencies such as the Indian rupee and the Philippine peso also showed significant weakness.
Bank Indonesia reiterated its commitment to remain in the market to ensure stability and ensure that the rupiah's movements remain in line with the country's economic fundamentals.
