SINGAPORE: The Indonesian rupiah held steady on Tuesday after the central bank, as expected, kept interest rates unchanged to support the currency's stability, while upbeat Chinese trade figures helped stocks and currencies across the region stage a late recovery. Bank Indonesia (BI) kept the benchmark interest rate at 4.00%, as it tries to avoid putting more pressure on a falling rupiah, but reiterated its pledge to use quantitative easing to support the coronavirus-hit economy.
Stocks in Jakarta were up 0.8%.
The rupiah, Asia's worst-hit currency this year, has been under pressure on concerns over proposed changes to the central bank act that could undermine BI's independence. Singapore stocks reversed course to gain as much as 0.7%, while South Korean shares also trimmed losses to close marginally lower.
Sentiment improved after Chinese customs data showed that imports grew at their fastest pace this year in September, while exports extended strong gains in a further boost to the world's second-biggest economy.
In Malaysia, where markets were largely on the edge awaiting developments on opposition leader Anwar Ibrahim's meeting with the king, the ringgit edged down and stocks reversed course to trade 0.5% higher. Financial markets in Thailand were closed for a holiday.
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