The rupiah dropped 1.1% to 17,658 per dollar on Monday, the worst performer in the region. Equities slumped 4.1% to the lowest in over a year, extending their Wednesday’s fall after MSCI Inc moved to exclude several stocks from its indexes.

The benchmark 10-year bond yield climbed 13 basis points to 6.82% on Monday, joining a global rout fueled by inflation fears.

Bank Indonesia is under pressure to step up its defence of the currency with the nation among the most vulnerable in Asia from the surge in oil prices following the war.

Indonesian assets underperformed peers on Monday as local markets played catchup to the weakness in emerging-market stocks and currencies late last week.

“BI is likely to continue to be in the market to maintain rupiah stability, but it is unlikely to alter the weakening momentum for now,” said Wee Khoon Chong, senior Asia-Pacific market strategist at BNY.

Higher oil prices are threatening to swell energy subsidies and widen the state budget deficit with Fitch Ratings and Moody’s Ratings cutting its credit rating outlook to negative this year.

The rupiah has fallen more than 5% this year, the biggest loser in Asia after the Indian rupee.