Indonesia's rupiah weakened to a historic low on Thursday, prompting intervention from Bank Indonesia, The Jakarta Globe reported the same day.
The currency weakened past the 17,300 rupiah per US dollar threshold. Senior Deputy Governor Destry Damayanti attributed the decline largely to external forces, particularly rising geopolitical tensions in the Middle East that have driven investors toward safer assets like the US dollar, according to the report.
In response, Bank Indonesia intensified its market operations to stabilize the currency. These measures included interventions in offshore non-deliverable forward markets, domestic spot transactions, and domestic non-deliverable forwards. The central bank has also been actively purchasing government bonds in the secondary market to maintain liquidity and bolster investor confidence, the news outlet reported.
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