Bank Indonesia May Intervene to Support Falling Rupiah

The Indonesian rupiah fell today, prompting speculations that the nation’s central bank will intervene to defend the currency.

The rupiah was under pressure from rising US Treasury yields and strengthening US dollar, which were sapping appeal from assets of emerging markets. The central bank was trying to hold off depreciation of the currency, but had little success so far. That resulted in speculations that the Bank Indonesia may go as far as to raise interest rates for the first time since 2014.

USD/IDR rose 0.23% to 13,921 as of 10:56 GMT today.

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