Indonesia's currency tumbled to its lowest levels since the Asian Financial Crisis in the late 1990s on Monday, despite the lack of crisis-like signals.
"The fall in oil prices is spilling over into concerns around government revenues," said Greg Gibbs, senior foreign-exchange strategist at RBS, noting the country is an oil and gas producer. "A lot of currencies are at their weakest in some time," especially energy currencies such as the Australian and Canadian dollars as well as Russia's ruble and Malaysia's ringgit, he noted.
The U.S. dollar was fetching 12,675 rupiah, off an intraday high of 12,695 rupiah. The 10-year bond yield was around 8.20 percent, compared with around 7.70 percent at the beginning of the month. The country's central bank said it was stepping into the market to smooth volatility in both the currency and to stabilize bond prices, according to Reuters.