The U.S. Federal Reserve's latest monetary policy decision has strengthened the U.S. dollar against major Asian currencies, causing the Indonesian rupiah and the Malaysian ringgit to depreciate. While the ringgit fell by 0.99% against the dollar to 4.508, the rupiah experienced an even sharper decline.
According to foreign media reports, as the rupiah continued to weaken, Bank Indonesia intervened in the market to stabilize the currency.
Fitra Jusdiman, head of monetary and securities asset management at Bank Indonesia, stated that the central bank is intervening in the spot foreign exchange market, the domestic non-deliverable forward (NDF) market, and the secondary government bond market to support the rupiah amid heightened market volatility.
In a text message, Jusdiman explained that, like most other currencies, the rupiah has been affected by the U.S. Federal Reserve's latest policy outlook. He emphasized that Bank Indonesia remains committed to maintaining the stability of the rupiah and will continue to adopt timely and prudent measures to counter fluctuations.
On Thursday, the rupiah fell as much as 1.2% against the U.S. dollar, hitting 16,281 — its weakest level since July 31.