JAKARTA: Indonesia’s central bank is ready to stabilise the rupiah, including through intervention if there was excessive volatility, an official said on Wednesday after the currency weakened as traders reacted to incoming US election results.
Fitra Jusdiman, a director at Bank Indonesia’s Monetary and Securities Asset Management Department, told Reuters the rupiah’s fall to three-month lows against the US dollar reflected sentiment on the US election.
“Current market development is currently dominated by US election sentiment that for now indicates a potential win for presidential candidate Donald Trump,” he said “This has led to a broad-based US dollar strengthening against most other currencies,” he said.
Indonesia central bank has intervened in FX market, official says
The rupiah fell by as much as 0.7% against the dollar to 15,840, its weakest level since Aug. 13, data from LSEG showed.
Bank Indonesia (BI) held rates steady at its October policy meeting as it focused on rupiah stability amid rising tension in the Middle East and to keep inflation in check.
The next policy decision is due on Nov. 20.
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