Rupiah Slumps as BI Fights Asian Currency Weakness
Rupiah Weakens as Asian Currencies Slide Against US Dollar
Indonesia's rupiah weakened to Rp 17,964 per US dollar on September 28, a decline of 61 points or 0.34%, according to Bloomberg data.
The central bank, Bank Indonesia, is taking steps to stabilize the exchange rate amid global financial uncertainty. Governor Destry Damayanti said that BI will optimize its monetary instruments to support the rupiah, including foreign exchange interventions and incentives for hedging transactions.
BI is also expanding its incentives for hedging transactions to encourage foreign funding inflows, with a premium discount of up to 25% for 12-month tenors. The measures aim to attract foreign capital and increase foreign exchange supply in the domestic market.