"The currency, however, may regain some of its value with improvement of sentiment expected later today," Samuel Sekuritas` economist Lana Soelistianingsih said on Friday.
Lana said Bank Indonesia (BI) plans to issue six month deposit certificate (SDBI) to add to the number of instruments already available to control banking liquidity.
"Currently banks place their assets in the central bank in the forms of short term seven day BI deposit facility (FasBI) or nine-month BI Certificate (SBI," she said.
She said the central bank has also issued "foreign exchange swap" auctioned every Thursday.
In the last auction of one-month and six month swap facility Bank Indonesia raised US$250 million, she said.
Bank Mandiri`s market analyst Reny Eka Putri said the Indonesian central bank is expected to intervene to prevent the rupiah from losing more value.
"The volatility of the financial market is quite high and the national currency has tended to weaken, but BI would protect the currency," he said.
He said the government would take some measures to to recover the public confidence in the national currency. (*)
Editor: Heru Purwanto
Copyright © ANTARA 2013
