Indonesia's Central Bank Intervenes as Rupiah Hits Record Low

JAKARTA, April 7: Bank Indonesia (BI) intervened in the foreign exchange market to stabilize the rupiah after it hit a record low against the U.S. dollar.

Senior Deputy Governor Destry Damayanti said stabilizing the rupiah is a top priority. She noted that global dynamics-particularly reactions to U.S.-Israeli tensions-have intensified pressure on the currency.

The rupiah weakened by 0.35% to 17,090 per dollar on Tuesday, marking a more than 2% decline year-to-date. BI plans to act in both spot and forward markets and may purchase government bonds if needed.

Authorities also aim to boost rupiah inflows through SRBI certificates. While the currency’s weakness impacts economic activity, rising commodity prices offer some relief.