We also used, on occasion, intervention in the foreign exchange market to counter the downward pressure on the exchange rate, but only after allowing it to move a considerable distance.
The important aspect of this whole episode for the issue at hand is that allowing the exchange rate to move provided a part of the mechanism that helped the economy adapt to the Asian crisis and the changes in capital flows that it brought about. This reduced any disruption to the domestic economy and, most importantly, did not compromise the setting of monetary policy.