Jakarta. Indonesia’s rupiah weakened beyond the Rp 17,300 per US dollar mark on Thursday, hitting its lowest level on record, as rising global uncertainty and geopolitical tensions weighed on emerging market currencies, Bank Indonesia said.

The currency traded at around Rp 17,302 per dollar as of 1:00 p.m. Jakarta time, according to Bloomberg data, breaching a key psychological threshold and marking the worst level in its history.

Senior Deputy Governor Destry Damayanti said the pressure on the rupiah was largely driven by external factors, particularly heightened global volatility stemming from escalating conflict in the Middle East. The developments have prompted investors to shift funds into safe-haven assets, putting regional currencies under strain.

“Pressure on the rupiah today is influenced by increasing global uncertainty, which is also affecting regional currencies,” Destry said in a statement.

Despite the sharp depreciation, Bank Indonesia said that the rupiah’s movement remains broadly in line with its regional peers. The currency has weakened about 3.54% year-to-date, reflecting a wider trend across emerging Asian markets.

To stabilize the exchange rate, the central bank has stepped up intervention measures across multiple markets. These include operations in the offshore non-deliverable forward (NDF) market, as well as domestic spot and domestic non-deliverable forward (DNDF) transactions. The central bank has also been purchasing government bonds in the secondary market to support liquidity and investor confidence.

Indonesia’s foreign exchange reserves remain solid, standing at $148.2 billion as of end-March, providing a buffer against external shocks and supporting the central bank’s policy response.

Bank Indonesia reiterated its commitment to maintaining rupiah stability, saying it will continue to intervene in a “consistent and measured” manner amid ongoing global financial market volatility.

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