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JAKARTA, April 17 (Reuters) –Indonesiacentral bank said it wasintervene in the marketto help stabilize the rupee and is open to purchasing government bonds to help stabilize the bond market.
TThe rupiah extended its losses by 0.28% on Wednesday to 16,215 per dollar, its lowest level in four years, after falling 2.08% a day earlier as the Indonesian market reopened after the holiday. Eid Al-Fitr.
Destry Damayanti, Senior Deputy Governor of Bank Indonesiasaid the rupee’s recent weakness is mainly due to global market conditions and the domestic economy stay resilient.
TThe central bank intervenes in the spot foreign exchange market, non-deliverable futures and, “if necessary, we will support government bonds,” she said.
“We need to reassure the market and show them that we are with them in the market to continually maintain the stability of the rupee,” Destry said.
The yield on Indonesia’s benchmark 10-year bond rose to 7.037% earlier on Wednesday, its highest level since November, before stabilizing around 6.964%.
Destry added that there was “nothing wrong” in the national economy and that there was sufficient dollar liquidity in the market, supported by large foreign exchange reserves.
Reporting by Stefanno Sulaiman
Written by Fransiska Nangoy;
Editing by John Mair, Kanupriya Kapoor
Add details
JAKARTA, April 17 (Reuters) –Indonesiacentral bank said it wasintervene in the marketto help stabilize the rupee and is open to purchasing government bonds to help stabilize the bond market.
TThe rupiah extended its losses by 0.28% on Wednesday to 16,215 per dollar, its lowest level in four years, after falling 2.08% a day earlier as the Indonesian market reopened after the holiday. Eid Al-Fitr.
Destry Damayanti, Senior Deputy Governor of Bank Indonesiasaid the rupee’s recent weakness is mainly due to global market conditions and the domestic economy stay resilient.
TThe central bank intervenes in the spot foreign exchange market, non-deliverable futures and, “if necessary, we will support government bonds,” she said.
“We need to reassure the market and show them that we are with them in the market to continually maintain the stability of the rupee,” Destry said.
The yield on Indonesia’s benchmark 10-year bond rose to 7.037% earlier on Wednesday, its highest level since November, before stabilizing around 6.964%.
Destry added that there was “nothing wrong” in the national economy and that there was sufficient dollar liquidity in the market, supported by large foreign exchange reserves.
Reporting by Stefanno Sulaiman
Written by Fransiska Nangoy;
Editing by John Mair, Kanupriya Kapoor