JAKARTA: Indonesia's foreign exchange reserves fell by $1.7 billion in March as the central bank defended the rupiah currency amid capital outflows triggered by rising US Treasury yields, data by the central bank showed on Wednesday.

The end-March reserve level of $137.1 billion "remained high" and could cover the cost of 10.1 months of imports, Bank Indonesia said in a statement.

The February reserve level of $138.8 billion was the highest on record.

The rupiah lost 2% against the dollar in March, but has regained some of its losses so far this month.