Bank Indonesia to intervene in FX, buy bonds 'massively' to support Rupiah

Reuters reports comments from Nanang Hendarsah, Head of monetary management at Bank Indonesia (BI), as he said that the Indonesian central bank will intervene in the foreign exchange and domestic non-deliverable forward markets and "massively" buy government bonds to maintain market confidence.

Key Quotes:

Today every emerging market currency will be under heavy pressure.

As usual, we will intervene in the spot market, hold auctions for NDF at 8.30 until closing and buy government bonds today massively.

BI’s bond purchases would help maintain market confidence, boost permanent rupiah liquidity and add bond stock for use in monetary operations.

Amid the intervention talks by the BI, the Indonesian Rupiah recovered from three-month lows against the US dollar, with USD/IDR now trading near 14,330 levels, still up 0.60%. The cross hit three-month highs at 14,360 last hour.