Indonesia's central bank said the rupiah's fall against U.S. dollar was still under control, after the currency slid to its weakest level in more than six months on Thursday following a surprise cut in interest rates the day before.

Indonesia’s central bank caught markets off guard with a surprise rate cut, upending expectations that it would keep policy settings on hold to help stabilize the rupiah.

Indonesia’s central bank defied the expectations of practically the entire market when it cut interest rates this week, deepening a period of uncertainty for government bond yields. Most Read from BloombergThese Homes Withstood the LA Fires.

The surprising decision by the BOK and BI underscores challenges faced by Asian central banks as they try to spur growth and defend their currencies against a towering dollar while preparing for tariffs from the incoming administration of U.S. President-elect Donald Trump.

Indonesia's central bank unexpectedly cut policy rates on Wednesday, resuming its monetary easing to prop up growth in Southeast Asia's largest economy despite financial market volatility that has sharply weakened the rupiah currency.

Indonesia unexpectedly reduced its key interest rate in its first monetary policy decision this year, moving to bolster economic growth even after the local currency recently weakened beyond the key level of 16,

Bank Indonesia (BI) slashed its benchmark interest rate by 25 basis points to 5.75 per cent, defying market expectations and signalling a shift in focus towards revitalising South-east Asia’s largest economy amid signs of a slowdown.

Indonesia’s central bank has unexpectedly cut interest rates despite a weakening rupiah, citing slowing growth momentum in south-east Asia’s largest economy. Bank Indonesia on Wednesday reduced its benchmark interest rate by 0.