- USD/IDR hits daily highs on devastating Indonesia’s Q2 GDP.
- Coronavirus pandemic’s impact on the economy continues to worsen.
According to the latest release from Statistics Indonesia, the Indonesian economy contracted 4.19% QoQ in Q2 2020 versus -3.49% forecast and -2.41% prior.
On an annualized basis, Indonesia’s GDP rate arrived at -5.32% compared to -4.61% expected and 2.97% seen in the first quarter (Q1) 2020.
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 jumped to daily lows of 15,585 following the release of the below-forecast Indonesian GDP data.
The cross ignored broad-based US dollar weakness.
