Indonesia Central Bank Enters FX Market to Balance Supply and Demand Amid Rupiah Fall

BANK INDONESIA / BI - JAKARTA. Indonesia's central bank entered in the foreign exchange market on Thursday to balance supply and demand, an official said, after the currency fell around 0.8% against the U.S. dollar, its lowest level since Sept. 16.

Edi Susianto, the head of Bank Indonesia's monetary management department, told Reuters the rupiah IDR= had weakened due to concern on rising geopolitical tension in the Middle East and a change in market expectation on the future magnitude of the U.S. Federal Reserve's cut.