BENGALURU: Indonesia’s currency was pinned at a more-than-three-month low on Thursday, as investors put further pressure after its central bank stayed pat on interest rates a day earlier and hinted at focusing on strengthening the rupiah leading to fewer chances of policy easing.

The Indonesian rupiah dropped up to 0.6% against the US dollar, hitting its lowest since mid-August. Stocks in Jakarta gained as much as 0.4%.

The US dollar strengthened due to a boost in fund flows.

Bank Indonesia on Wednesday kept its key benchmark interest rate on hold for the second month in row after a surprise cut in September, adding that focus would now remain directed towards making the currency stronger and stable against global economic and geopolitical uncertainties.

“We believe Bank Indonesia will be compelled to maintain a pro-stability stance next year, with rupiah stability remaining a key focus,” said analysts at Mandiri Sekuritas.

Indonesia’s neighbour, Singapore is expected to announce final numbers for third-quarter growth on Friday. Investors expressed their caution ahead of the key economic news item, with the local dollar and shares both trading more or less flat.

The Monetary Authority of Singapore (MAS) stood pat in October.

“Our economists’ base case is for a Jan 25 easing, although easing could be delayed if inflation is sticky and/or growth remains robust,” said analysts at Maybank.

Among other Asian currency markets, the Taiwan dollar and Thailand baht dropped 0.2% and 0.1%, respectively, while the Malaysian ringgit added 0.1%.