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Indonesia central bank intervenes in FX, bond markets amid capital outflows

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Indonesia's central bank has intervened in the spot currency, domestic non-deliverable forward and bond markets amid outflows related to fears of the spread of Covid-19 in South Korea, an official told Reuters on Monday.

[JAKARTA] Indonesia's central bank has intervened in the spot currency, domestic non-deliverable forward and bond markets amid outflows related to fears of the spread of Covid-19 in South Korea, an official told Reuters on Monday.

"There are outflows in the bond (market) and banks are short covering," Nanang Hendarsah, Bank Indonesia's head of monetary management said.

"Because of the jump in virus cases in Korea during the weekend. It's to do with flight to quality away from EM (emerging market) assets," he added, referring to emerging markets.

The rupiah had weakened by as much as 0.9 per cent as at 0308 GMT on Monday to trade at 13,890 per US dollar, the lowest since Jan 8.

REUTERS