The central bank said the weakening rupiah level against the US dollar was "not worrying" because the reported figures were not the currency's fundamental rate, and it would continue to guard the rupiah.
"Bank Indonesia (BI) is always in the market. We have scrutinized this [trend] over the last two days and we guard [the rupiah] tightly so [volatility] does not become too extreme," acting BI Governor Darmin Nasution said Friday, citing Euro debt problems as one reason for the drop.
The rupiah has fallen by 3 percent against the dollar this week, among the currencies worst hit in Asia. The rupiah rate fell to Rp 9,265 – Rp 9,275 against the dollar on Friday as compared to Rp 9,080 – Rp 9,090 a day earlier.
"This is not too worrying because it's not the fundamental [rate]. The rupiah should strengthen against the dollar. This is temporary," he added.
Darmin dismissed concerns the Euro debt problem could cause another economic crisis.
He said in times of panic investors choose to buy dollars, deemed the safest financial instrument.
"Bank Indonesia (BI) is always in the market. We have scrutinized this [trend] over the last two days and we guard [the rupiah] tightly so [volatility] does not become too extreme," acting BI Governor Darmin Nasution said Friday, citing Euro debt problems as one reason for the drop.
The rupiah has fallen by 3 percent against the dollar this week, among the currencies worst hit in Asia. The rupiah rate fell to Rp 9,265 – Rp 9,275 against the dollar on Friday as compared to Rp 9,080 – Rp 9,090 a day earlier.
"This is not too worrying because it's not the fundamental [rate]. The rupiah should strengthen against the dollar. This is temporary," he added.
Darmin dismissed concerns the Euro debt problem could cause another economic crisis.
He said in times of panic investors choose to buy dollars, deemed the safest financial instrument.
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