USD/IDR: Rupiah remains pressured as Indonesia’s Q4 GDP disappoints with 4.97%

USD/IDR holds the higher ground after Indonesia’s Q4 GDP misses estimates.
Bank Indonesia’s (BI) intervention fails to support the rupiah.
China’s coronavirus outbreak impact weighs on the economy.

Dhwani Mehta FXStreet

According to the latest release from Statistics Indonesia, the Indonesian economy contracted 1.74% in Q4 2019 versus -1.67% forecast and 3.06% prior to QoQ.

On an annualized basis, Indonesia’s GDP rate arrived at 4.97% compared to 5.04% expected and 5.02% earlier for the fourth quarter (Q4) 2019.

The GDP for full-year 2019 grew 5.02% from a year earlier, slower than 2018's rate of 5.17%. The poll had forecast growth of 5.03%, per Reuters.

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 trades near daily highs of 13,730 on below-forecasts Indonesian GDP data, as the rupiah continues to bear the brunt of the rising coronavirus risks on economic growth.

Official: Bank Indonesia will remain in the market to stabilize market amid China’s coronavirus scare

Author

Dhwani Mehta

FXStreet

Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.

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