“Bank Indonesia will maintain a presence in the market to maintain exchange rate stability and prevent the impact of the escalating conflict in the Middle East,” Deputy Governor Destry Damayanti said in a statement on Wednesday.
The Reserve Bank of India sold dollars in the foreign exchange market as crude oil prices rose due to conflict in the Middle East, said traders familiar with the matter, who asked not to be identified because they were not authorized to speak publicly.
Iran’s war is limiting appetite for risky assets, with central banks in Indonesia, India and Turkey also stepping in to defend their currencies on Monday. Rising oil prices are adding to inflation and trade deficit concerns for most economies in Asia as they are net importers of the fuel.
Indonesia’s central bank will continue to implement “robust and consistent interventions” in both the offshore and onshore non-deliverable forward, spot and bond markets, Damayanti said. The currency’s depreciation is in line with the region and foreign exchange reserves were stable at $154.6 billion at the end of January, she said.
The rupiah fell as much as 0.5% to 16,919 per dollar on Wednesday, moving closer to its weakest level on record before regaining equilibrium. The Indian rupee fell as much as 0.8% to a record low. Both currencies are among the worst performers in Asia this year, along with the South Korean won.
The rupee could weaken further given India’s proximity to the Iranian war, India’s dependence on energy imports and the risk lingering in oil prices, said Shaun Lim, currency strategist at Malayan Banking Bhd. The Reserve Bank of India is expected to “intervene if things get too bad for the rupee,” he said.
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Published on March 4, 2026
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