Indonesia's foreign exchange reserves recorded the biggest monthly increase since December 2023, which helped the Bank of Indonesia to support the Indonesian rupiah — the Indonesian rupiah exchange rate is currently hovering near an all-time low. Bank Indonesia said in a statement on Thursday that the country's foreign exchange reserves increased by 6.4 billion US dollars last month to reach 156.5 billion US dollars, driven by factors such as increased tax and service revenue, the government's global Islamic bond issuance and loan withdrawals. The size of this reserve reached a new high since March last year. It can cover 6.3 months of import and external debt repayment requirements, which is double the international standard. More abundant dollar reserves may strengthen support for the Indonesian rupiah. The Indonesian rupiah was the second-worst performing currency in Asia last year, after the Indian rupee. The Indonesian rupiah exchange rate continues to be under pressure due to the rise in the scale of capital outflows caused by increased investors' concerns about the widening fiscal deficit. Year-end budget data will be released Thursday afternoon. The Indonesian rupiah exchange rate fell 0.1% against the US dollar in intraday trading on Thursday to 16794. This is the fifth consecutive day of weakening and is about to usher in the longest round of decline in more than three months.

Indonesia's foreign exchange reserves recorded the biggest monthly increase since December 2023, which helped the Bank of Indonesia to support the Indonesian rupiah — the Indonesian rupiah exchange rate is currently hovering near an all-time low. Bank Indonesia said in a statement on Thursday that the country's foreign exchange reserves increased by 6.4 billion US dollars last month to reach 156.5 billion US dollars, driven by factors such as increased tax and service revenue, the government's global Islamic bond issuance and loan withdrawals. The size of this reserve reached a new high since March last year. It can cover 6.3 months of import and external debt repayment requirements, which is double the international standard. More abundant dollar reserves may strengthen support for the Indonesian rupiah. The Indonesian rupiah was the second-worst performing currency in Asia last year, after the Indian rupee. The Indonesian rupiah exchange rate continues to be under pressure due to the rise in the scale of capital outflows caused by increased investors' concerns about the widening fiscal deficit. Year-end budget data will be released Thursday afternoon. The Indonesian rupiah exchange rate fell 0.1% against the US dollar in intraday trading on Thursday to 16794. This is the fifth consecutive day of weakening and is about to usher in the longest round of decline in more than three months.