Indonesia's central bank says economic fundamentals 'sound'

JAKARTA: Indonesia's central bank deputy governor on Wednesday said there was no need for people to panic about the rupiah's recent depreciation, as the country's economic fundamentals are "sound".

The rupiah strengthened by 0.12 percent on Wednesday in Jakarta, closing at 12,655 to the dollar. On Tuesday, it touched a 16-year low of 12,930.

Mirza Adityaswara, Bank Indonesia's senior deputy governor, told reporters that have the rupiah "undervalued" helps make the country's exports competitive.

Bank Indonesia will continue its role to "stabilise" the rupiah in foreign exchange markets and sovereign bond prices in the secondary market. Mirza said.