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  • Indonesia’s Rupiah is feeling the pull of gravity alongside losses in stocks. 
  • Heightened fears of a coronavirus-induced recession are weighing over the risk sentiment. 

Indonesian Rupiah (IDR) has come under pressure on Thursday as markets are offering pro-growth currencies and buying US dollar, a global reserve, on persistent coronavirus-led recession in the global economy. 

Rises to 15,900

The USD/IDR pair printed a high of 15,907 in early Asia and was last seen trading largely unchanged on the day at 15,766. 

The financial markets are trading risk-averse with the futures tied to the S&P 500 reporting a 0.6% drop. Meanwhile, the dollar index, which tracks the value of the greenback against majors, is trading at 99.83, up 0.26% on the day. 

The risk sentiment came under pressure on Wednesday after record low Retail Sales bolstered recession fears. The International Monetary Fund on Tuesday said the global gross domestic product could contract by 3% in 2020. 

The risk-off could continue as the number of coronavirus cases continues to rise worldwide and most nations have extended lockdown. There are now more than 1.9 million confirmed cases of the virus across the globe and more than 123,100 people have died, according to the World Health Organization. Meanwhile, the number of confirmed cases in the US has exceeded 633,200, while the death toll has risen to more than 28,200.

Further, Indonesia reported a smaller-than-expected trade surplus in March as exports dropped 0.20 percent. The surplus could decline further in the near term, as the global economic activity has pretty much come to a standstill due to the virus pandemic. 

Technical levels