The central bank continued to monitor global economic pressure on the local currency, Executive Director of BI`s Monetary Management Department, Nanang Hendarsah, stated.
To anticipate stronger pressure, BI is prepared to conduct dual intervention by stabilizing the state securities market, he noted.
"BI is making efforts to stabilize the foreign currency market. So far, it (the pressure) is still manageable," he said.
To stabilize the domestic financial market, BI usually intervenes in the foreign currency market and buys state securities, steps often described by BI as dual intervention.
The rupiah weakened 137 points to trade at Rp14,643 per dollar in the spot market on Monday morning compared to the previous close of Rp14,486 per dollar.
According to the Jakarta Interbank Spot Dollar Rate (Jisdor) announced on Monday morning, the rupiah traded at Rp14,583 against the dollar, falling 140 points from Rp14,437 per dollar last Friday (Aug 10).
On a separate occasion, economist Lana Soelistianingsih of Samuel Asset Management stated that the negative sentiment from the Turkish economic downturn was one of the factors causing other currencies, including the rupiah, to plunge.
Turkey is under a threat of financial crisis and has become the center of attention from global investors due to the Turkish government`s stronger intervention in the central bank.
"Turkey`s lira depreciated sharply. The Turkish effect will fearfully cause the US dollar to strengthen. On the contrary, the currencies of emerging markets, including the rupiah, will weaken," he added.
Reporter: Indra Arief Pribadi
Editor: Yosep Hariyadi
Copyright © ANTARA 2018
