Indonesia's central bank said the rupiah's fall against U.S. dollar was still under control, after the currency slid to its weakest level in more than six months on Thursday following a surprise cut in interest rates the day before.

The Indonesian rupiah stayed near six-month lows on Thursday, while the South Korean won snapped a three-day winning streak after both countries' central banks shocked investors by eschewing widely anticipated interest rate calls.

The surprising decision by the BOK and BI underscores challenges faced by Asian central banks as they try to spur growth and defend their currencies against a towering dollar while preparing for tariffs from the incoming administration of U.S. President-elect Donald Trump.

Indonesia's central bank unexpectedly cut policy rates on Wednesday, resuming its monetary easing to prop up growth in Southeast Asia's largest economy despite financial market volatility that has sharply weakened the rupiah currency.

JAKARTA : Indonesia defied market expectations by cutting its key interest rate, moving to bolster economic growth even after the local currency’s recent slide beyond the key level of 16,000 to the dollar. Bank Indonesia (BI) lowered the benchmark BI-Rate by 25 basis points to 5.75% today.

INDONESIA’S rupiah fell to its lowest in more than five months on Wednesday ahead of the central bank’s monetary policy decision later in the day, while the Thai baht stalled around a seven-week low as dollar remains dominant.

The Indonesian rupiah hit a more than six-month low on Thursday while the South Korean won snapped a three-day winning streak after both countries’ central banks shocked investors by eschewing widely anticipated interest rate calls.

Indonesia’s central bank caught markets off guard with a surprise rate cut, upending expectations that it would keep policy settings on hold to help stabilize the rupiah.