(Feb 28): Indonesia’s central bank pledged to intervene strongly in markets Friday after the rupiah plunged to its lowest level in almost five years.

“We will boldly enter the market to maintain the balance of foreign-exchange supply and demand so that market confidence is maintained,” Edi Susianto, executive director for monetary management at Bank Indonesia (BI), said in a text message. Authorities also intervened on Thursday.

The rupiah fell 0.7% to 16,568 on Friday, its weakest since April 2020, as US tariffs on Canada and Mexico are set to take effect next week. Asian currencies face multiple headwinds including growing pressure from US President Donald Trump’s trade policies and uncertainty over the Federal Reserve’s easing cycle.

The rupiah “looks likely to continue trading with a more risk-off tone”, said Alan Lau, a strategist at Malayan Banking Bhd (KL:MAYBANK) in Singapore. “The situation though still looks fluid as it is uncertain if the tariff threats could just represent mere brinkmanship or if it would materialise.”

The rupiah has been under pressure this year after BI cut its benchmark interest rate in January in an unexpected move. The currency has slumped almost 3% this year in the worst performance among major emerging-Asian peers.

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