Indonesia's central bank may intervene in the foreign exchange market to help smooth out fluctuations in the rupiah and keep it within an acceptable range, its governor told reporters on Friday.
Burhanuddin Abdullah's remarks followed sharp falls in the rupiah earlier on Friday. The currency had made strong gains in recent days, hitting fresh one-year highs due partly to short-term capital inflows.
There have been concerns over rupiah volatility and the possibility of sudden reversals of capital flows as recent gains have been linked to so-called "hot money" flowing into the stock and bond markets. Abdullah said Bank Indonesia was not targeting any particular level and would accept a gradual move.
"If it fluctuates from 9,100 and let's say to 8,700, we'll let it be. But any fluctuations must not take place in just 2-3 minutes because that hurt corporates," Abdullah said.
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