The decaying rupiah is the latest in a string of problems facing strife-torn Indonesia. As political unrest has intensified, its economic prospects look increasingly grim. Indonesian stocks are trading at their lowest levels in two years.
Investors say overseas interest has almost totally disappeared.
Chief economics minister Rizal Ramli said Tuesday the government would support the bank's efforts. But observers worry the intervention will not work. Now the rupiah has breached 10,000, they fear it will resume its drop, possibly toward all-time lows. Prior to the bank stepping in, the rupiah neared a 30-month low, around 11,210. Currency dealers say 12,000 is not out of the question.