JAKARTA : Indonesia’s central bank will act boldly to maintain rupiah stability by intervening in the spot, domestic non-deliverable forwards, and bond markets, a deputy governor said on Wednesday after the rupiah hit a record low against the dollar.
Senior deputy governor Destry Damayanti told Reuters that moves in domestic bonds on Wednesday indicated that investors still had confidence in the sovereign bond market.
The rupiah hit a record low of 16,970 per dollar on Wednesday morning, before paring some of its losses, according to LSEG data. Destry said regional currencies were weaker on the day because of the escalating global trade war.
“This was triggered by President Trump’s decision to suddenly decide to increase tariffs on Chinese products by 104 per cent.” she said, adding the domestic economy remained resilient.
It was the second day in a row that the rupiah had fallen to a record low. Indonesia’s financial markets felt the whiplash from the U.S. tariff announcement on Tuesday when markets reopened after a long holiday period.
Source: CNA
