JAKARTA, June 12 (Xinhua) -- The Indonesian rupiah strengthened on Friday, falling back below 18,000 per U.S. dollar, after Bank Indonesia (BI) raised its benchmark interest rate to 5.5 percent in a bid to stabilize the currency.
The central bank said foreign investors have responded positively to its rare off-cycle interest rate hike and the increase in bond yields.
BI Communications Department Head Ramdan Denny Prakoso said the bank recorded a higher foreign capital inflow in a central bank bill auction on June 10.
Foreign capital inflows have also begun to return to the government bond market, particularly in the short and medium-term tenors, the official said.
The central bank added that it will continue to monitor developments in global and domestic financial markets while maintaining the attractiveness of domestic financial instruments to support foreign capital inflows. ■
