Bank Indonesia buys longer-dated government bonds to stabilise market, traders say

Bank Indonesia was seen buying longer-dated government bonds on Tuesday in an attempt to stabilise the market, according to two traders.

The move came after Indonesia's abrupt removal of its influential Finance Minister Sri Mulyani Indrawati on Monday stunned markets, sparking a sharp selloff in the rupiah and the country's bonds on Tuesday.

BI earlier on Tuesday also said it had intervened in the foreign exchange market to ensure that the rupiah exchange rate moves in line with its fundamentals.