JAKARTA: Indonesia central bank has intervened in the foreign exchange market in what it called a "bold" way to maintain market confidence in the rupiah, which fell to a four-month low against the dollar earlier on Friday (Dec 13).
"We entered the market with a quite bold triple intervention," Bank Indonesia's head of monetary management department, Edi Susianto, told Reuters.
The triple intervention is referring to interventions the central bank conducted in the spot FX market, domestic non-deliverable forwards and buying of government bonds in the secondary market.
He added that the bank will continue the work to support market confidence in the rupiah.
Edi said the rupiah's fall was mainly due a resilient U.S. economy, especially high headline inflation and growing geopolitical tensions between China and Taiwan.
The rupiah fell as much as 0.47% to 15,995 a dollar as of 0555 GMT on Friday.
The central bank has said its short-term policy focus will be on keeping the rupiah stable.
It will hold its next policy meeting next week on Dec 17-18. It kept the benchmark rate steady at 6.00% at last month's policy meeting. - Reuters
