Jakarta. Rupiah sank to a fresh record low against the Singapore dollar on Wednesday, briefly breaching Rp 14,000 for the second time in less than a week and touching Rp 14,029 per SGD, its weakest level on record, as mounting global uncertainty and rising domestic demand for foreign currency weighed on the Indonesian currency.

Data from Investing showed the rupiah hit Rp 14,029 per Singapore dollar in spot trading before trimming losses later in the day to around Rp 14,011 per SGD, down 69 points or 0.50%.

The decline extended the rupiah's losing streak against the Singapore dollar after it first crossed the psychological Rp 14,000 threshold on Friday, when it touched Rp 14,018 per SGD.

Pressure on the rupiah was not limited to the Singapore dollar. Against the US dollar, the currency also fell to a new all-time low of Rp 17,969 before recovering slightly to around Rp 17,950-Rp 17,955 in afternoon trading.

Responding to the sharp depreciation, Bank Indonesia (BI) said it would continue deploying its policy instruments to safeguard exchange rate stability and maintain orderly market conditions.

"Bank Indonesia will continue to closely monitor developments in global and domestic financial markets and will remain present in the market," BI Communications Department Head Ramdan Denny Prakoso said in a statement on Wednesday.

Ramdan said the central bank was optimizing all available policy tools to ensure the smooth functioning of the foreign exchange market while maintaining adequate FX liquidity to support financial market stability.

As part of those efforts, BI began implementing a monthly $25,000 threshold for cash purchases of foreign currency against rupiah without underlying transactions on June 2.

The central bank is also expanding the use of Local Currency Transaction (LCT) arrangements with partner countries to reduce dependence on the US dollar and mitigate exchange rate volatility.

"Indonesia currently has LCT cooperation agreements with China, Japan, Malaysia, Thailand, South Korea, and the United Arab Emirates," Ramdan said.

BI said the rupiah remains under pressure from heightened global uncertainty, particularly the escalating conflict in the Middle East, which has increased volatility across international financial markets.

Domestically, seasonal demand for foreign currency has also intensified pressure on the rupiah. Demand has been driven by external debt repayments and dividend repatriation, while US dollar inflows from foreign capital remain relatively limited.

BI said maintaining rupiah stability requires close coordination among government agencies, regulators, banks, businesses, and market participants. The central bank pledged to strengthen cooperation with stakeholders to preserve Indonesia's external resilience amid growing global challenges.

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