Indonesia’s central bank intervened to stabilize the rupiah as Middle East tensions sent emerging market assets tumbling. Senior Deputy Governor Destry Damayanti said Bank Indonesia will maintain “firm and consistent interventions” across offshore and onshore non-deliverable forward markets, spot trading, and bond markets to counter volatility.

The Iran war has dampened appetite for risky assets, prompting similar currency defenses in India and Turkey. Rising oil prices are intensifying concerns about inflation and Indonesia’s trade deficit, given the country imports about half its oil needs.

The rupiah weakened 0.4% to 16,919 per dollar on Wednesday, nearing its weakest level on record. Damayanti noted the currency’s depreciation remains in line with regional peers, while foreign exchange reserves stood at $154.6 billion at January’s end.