19-4-2024 (JAKARTA) Amid renewed tensions in the Middle East, the Indonesian central bank is taking bold steps to maintain market confidence, an official stated on Friday.
Edi Susianto, the head of monetary management at Bank Indonesia, informed Reuters that the central bank is implementing a “triple intervention,” focusing particularly on the spot foreign exchange market and domestic non-deliverable forwards.
The rupiah experienced a decline of up to 0.7 per cent to 16,285 per dollar on Friday, marking a fresh four-year low. This drop coincided with a broader slide in Asian currencies, driven by risk-off sentiment following reports of escalating tensions between Iran and Israel.
Simultaneously, Jakarta’s benchmark stock index fell by 1.4 per cent, while the yield of the 10-year sovereign bond remained close to 7 per cent.
