Analyst: The Indonesian central bank is expected to continue defending the rupiah amid oil price fluctuations

Golden Ten Data reported on March 10 that analysts say, due to oil price fluctuations, a strengthening US dollar, and safe-haven capital outflows triggered by the Iran conflict, Bank Indonesia may continue to defend the rupiah at key levels to address concerns about the country's investment appeal. It is expected that Bank Indonesia will intervene in the market to keep the exchange rate below the psychological threshold of 17,000 rupiah per US dollar. The uncertainty over how long the war will last further complicates Indonesia's existing economic concerns, and high crude oil prices could trigger inflation in this net oil-importing country. Mitsubishi UFJ currency strategist Lloyd Chan stated: "The strong US dollar and weak sentiment currently have a greater impact on the rupiah, and Bank Indonesia is likely to vigorously defend the 17,000 level. This is both to stabilize market sentiment and to prevent a sharp deterioration in the balance of payments situation."