The Indonesian central bank intervened in the market after the rupiah weakened to 17,422 per dollar amid sell-offs in emerging market assets due to the impact of the Iran-Iran conflict driving up oil prices.
On May 5, 2569 at 11.04:XNUMX a.m., Bloomberg News reported that Bank Indonesia quickly intervened in the money market after the rupiah weakened to a record low. The government intervened through various tools, including non-deliverable forward (NDF) markets abroad, domestic spot transactions, and secondary market trading of government bonds, in order to stabilize the currency.
The rupiah weakened by another 0.2% to 17,422 rupiah per US dollar on the same day, hitting a new low amid selling pressure on developing country assets. Investors are concerned about the impact of soaring oil prices and potential conflicts in the Middle East, particularly the conflict with Iran.
Besides Indonesia, currencies in the Asian region are also facing pressure, with the Indian rupee weakening to a new record low, while the Philippine peso is also nearing its all-time low.
Indonesian central bank officials confirmed that the central bank will continue to monitor the market to ensure smooth market mechanisms and maintain currency stability in line with economic fundamentals.
refer : bloomberg.com
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