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Indonesian says 'always' in the forex market to calm fluctuations

Indonesia's central bank on Thursday cut its benchmark interest rate by 25 basis points to 7.25 per cent to support sagging economic growth, the first rate change in 11 months.

[JAKARTA] Indonesia's central bank will "always" be in the foreign exchange and bond markets to calm fluctuations, its spokesman said on Thursday as the rupiah moved close to a 17-year low. "Bank Indonesia will monitor and will always be in the market to calm fluctuations in the exchange rate and the bond prices," Peter Jacobs, the spokesman said.

He said the rupiah, which was trading at 13,240 per dollar on Thursday, weakened because of the strengthening of the euro.

The rupiah hit a 17-year low in March of 13,245 against the dollar.

The bond yield, rising since Friday, was at 8.198 per cent Thursday morning.