JAKARTA: Indonesia’s central bank said the rupiah’s sharp fall to fresh four-months on Thursday was due to the impact of the US Federal Reserve’s policy outlook, and said it would act to stabilise the currency against any excessive volatility.

Fitra Jusdiman, a director at Bank Indonesia’s Monetary and Securities Asset Management Department, told Reuters that markets had perceived the Federal Reserve to be more hawkish than they had expected in its policy review overnight.

Indonesian rupiah, Thai baht weaken ahead of central bank bank rate decisions

The rupiah had weakened by as much as 1.03% to 16,250 per a dollar as of 0240 GMT, its lowest level since Aug. 2.