USD/IDR: Rupiah’s recovery mode intact even as Indonesia’s Q1 GDP contracts 2.41%
|- USD/IDR defends gains despite disappointing Indonesia’s Q1 GDP
- Coronavirus outbreak impact continues to weigh on the economy.
According to the latest release from Statistics Indonesia, the Indonesian economy contracted 2.41% QoQ in Q1 2020 versus -1.27% forecast and -1.74% prior.
On an annualized basis, Indonesia’s GDP rate arrived at 2.97% compared to 4.04% expected and 4.97% seen in the fourth quarter (Q4) 2019.
About Indonesia’s GDP
The Gross Domestic Product released by the Statistics Indonesia is a measure of the total value of all goods and services produced by Indonesia. The GDP is considered as a broad measure of economic activity and health. Generally speaking, a high reading is seen as positive (or bullish) for the Rupiah, while a negative trend is seen as negative (or bearish).
FX implications
USD/IDR trims gains near 15,065 despite the below-forecast Indonesian GDP data, as broad-based US dollar weakness rescues the rupiah bulls.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.