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Bank Indonesia (BI) considers the rupiah exchange rate value as stable and supportive of the economic recovery despite the recent depreciation fuelled by surging US rates, the central bank Governor Perry Warjiyo said in a speech at a forum with business people in the resort island of Bali.

Additional comments

“We have stabilized our exchange rate. Praise be to God that if we compare with other countries, although we are seeing a depreciation of 3% this year due to rising US Treasury yields  but the exchange rate remains stable and supportive of economic recovery.”

Reiterates the “pledge to use all of the central bank’s tools to support the economy.”

Market reaction

The Indonesian rupiah recedes from near five-month lows against the US dollar on upbeat comments from Governor Warjiyo.

USD/IDR now trades at 14,570, up 0.31% on the day, having reached five-month highs at 14,594.50 on April 1.