JAKARTA, Jan 16 — Indonesia's central bank said the rupiah's fall against US dollar was still under control, after the currency slid to its weakest level in more than six months today following a surprise cut in interest rates the day before.
"The market reaction that occurred this morning is still under control and short term in nature because market participants are still digesting BI's decision yesterday," Edi Susianto, Bank Indonesia's head of monetary management, told Reuters.
He said the central bank would ensure the supply and demand of foreign exchange in the market.
BI surprised investors yesterday when it cut its key benchmark policy rate by 25 bps to 5.75 per cent, saying the decision was taken to support economic growth.
The rupiah was down as much as 0.4 per cent to 16,383 per dollar this morning. The currency weakened even as other Asian currencies, such as the ringgit, yen, and Indian rupee, strengthened against the dollar.
— Reuters
