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FOREX - JAKARTA. Indonesia's central bank is taking steps to maintain balance in the foreign exchange market, the head of its monetary department said on Tuesday, as the rupiah dropped to its weakest level since April 2020.
Bank Indonesia is intervening in spot market and domestic non-deliverable forwards, Edi Susianto told Reuters, adding it is also boosting the attractiveness of rupiah-denominated assets to attract inflows.
The Indonesian rupiah on Tuesday slid as much as 1.95% on Tuesday to hit 16,150 per U.S. dollar, its weakest level since April 2020, as the market reopened after the Eid al-Fitr holidays.
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It led the decline among emerging Asian currencies.
The benchmark stock index dropped around 2.5% on Tuesday.
While Indonesian markets were closed for the holidays, the U.S. dollar had gained after strong U.S. economic data and rising inflation led markets to push out expectations for when the Federal Reserve could start cutting interest rates.
