(Bloomberg) -- Bank Indonesia intervened in currency markets to support the rupiah as traders price in greater prospects of a Donald Trump victory in the US elections and a more measured pace of easing by the Federal Reserve.

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The central bank is intervening in the spot market and domestic non-deliverable forwards to smooth out volatility as the rupiah falls on Tuesday, Edi Susianto, executive director for monetary management at BI said in a text message. It’s the second confirmed intervention from BI in two weeks.

The rupiah fell as much as 0.5% to 15,568 per dollar in morning trading, set for the biggest drop since October 7 when the central bank was also forced to enter the market to support the currency.

“Rupiah weakening is triggered by recent less-dovish statements from the Fed’s officials and uncertainty surrounding US election,” Susianto said. The currency’s moves are still manageable though with exporters seen supplying dollars to the market, he added.

Asian currencies are weaker in early trading Tuesday amid a surge in the dollar and Treasury yields as investors focus on the outcome of the US elections in November and comments from Fed officials indicating a go-slow approach on further policy easing.

Volatility in the rupiah may delay further interest rate cuts by the central bank this year. Governor Perry Warjiyo said last week that he sees room for further easing but the central bank’s focus at the moment is rupiah stability. BI left the key rate unchanged at 6% this month.

The Indonesian central bank has ample resources to support the rupiah, with its foreign-exchange reserves remaining near a record in September.

--With assistance from Matthew Burgess.

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