Indonesia Tightens Rule on FX Purchases After Rupiah Hit New Record Low

Indonesia further tightened rules on dollar purchases to support the beleaguered rupiah after the currency slumped to a series of record lows.

Cash purchases of foreign currency without supporting documents will be cut to $25,000 from $50,000, to aid the rupiah, Bank Indonesia Governor Perry Warjiyo said late Tuesday. The currency is undervalued and should strengthen, he said at a joint briefing with ministers after meeting President Prabowo Subianto. The central bank intervened in the market Tuesday as the rupiah fell as low as 17,443 per dollar.