Indonesia and India intervened Friday to support their currencies as both face
downward pressure from surging energy prices. Despite FX sales, the rupiah fell
0.5% versus the dollar on Friday and is down 7% YTD, the weakest among peer EM
currencies. The rupee rose 0.7% on Friday, ending a two-day slide, and is down
5.7% YTD. Bank Indonesia said it will continue around-the-clock, global efforts
to stabilise the rupiah via spot FX intervention, non-deliverable forward
operations and government bond purchases. Traders said the Reserve Bank of India
has sold dollars in onshore and offshore markets and has been intervening in
recent days to support the rupee.
