Rupiah's Biggest Drop Since 2016 Spurs Central Bank Intervention
By Ruth Carson
June 21, 2018, 6:10 AM GMT+5 Updated on June 21, 2018, 10:22 AM GMT+5
Currency drops as much as 1.2 percent from its close June 8
BI’s Hendarsah says intervening in currency, bond markets
Indonesia’s rupiah slid the most since November 2016 as trading resumed after the Eid al-Fitr holidays, playing catch up to recent emerging-market losses triggered by rising trade frictions between the U.S. and China.
Bank Indonesia is intervening in the currency and bond markets, Nanang Hendarsah, executive director of monetary management, said in a text message. The rupiah fell as much as 1.2 percent to 14,099 per dollar from its close on June 8, and the yield on benchmark bonds surged. The Jakarta Composite Index added to its 1.8 percent loss from Wednesday, when equity markets reopened after celebrating the end of the holy month of fasting.
