FOREX - JAKARTA. Indonesia's central bank has intervened in the foreign exchange market to ensure a balance is maintained between supply and demand, an official told Reuters on Thursday, adding the exchange rate movements were under control.
The rupiah has dropped to its weakest in two months due to external factors like market reactions and in anticipation of monetary policy reviews in Japan and the United States, said Edi Susianto, Bank Indonesia's head of monetary management.
He added the currency was also "slightly affected by the development in domestic political conditions", without elaborating.
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The rupiah has weakened further against the U.S. dollar, following a 0.5% fall the previous day, hitting 15,728 a dollar on Thursday morning, its lowest since November.
The rupiah's drop comes amid speculation and reports in local media about the potential resignation of respected Finance Minister Sri Mulyani Indrawati.
The finance ministry last week said Sri Mulyani is continuing to carry out her duties in managing state finances.
President Joko Widodo on Saturday told reporters his cabinet is working as normal, dismissing the reports as rumours in an election year.
Indonesians will go to polls on Feb. 14 for legislative and presidential elections.
