United States (US) Federal Reserves left rates steady and signaled ongoing support for the recovery at their latest meeting - Photo by GettyImages

JAKARTA (TheInsiderStories) – Good Morning! United States (US) Federal Reserves left rates steady and signaled ongoing support for the recovery at their latest meeting. The central bank also said even the pace of recovery has improved, there was still a long way to go until the economy achieves its inflation and labor market objectives.

The policymakers has said it will let inflation run above 2 percent and wait for the unemployment picture to improve before it moves on rates and is likely not in this year. The chairman, Jerome Powell says he believes inflation would be transitory as the economy reopens.

While, in his first speech at the Congress, President Joe Biden is expected to pitch his US$1.8 trillion “American Families Plan” later today. He plans to fund the package by nearly doubling the capital gains tax for Americans making over $1 million per year. In addition to the weekly data on jobless claims, Thursday brings us the first quarter GDP number, which analysts tracked at 6.1 percent, up from 4.3 percent in the fourth quarter.

In Asia, US announced to deliver medical supplies over US$100 million to India to help the country handle the “tsunami” infection cases. The country’ toll from the COVID-19 surged past 200,000 on Wednesday, worsened by shortages of hospital beds and medical oxygen. At least 300,000 people test positive each day for the past week.

On Wednesday, Malaysia reported the highest daily case of COVID-19 in the last two months. According to local authorities’ records, there were 3,142 new cases above 3,000 had occurred on February 24, when there were 3,545 cases. At the same time Prime Minister Muhyiddin Yassin received a vaccine shot as part of the launch of a national vaccination program in which.

In Europe, Russian foreign minister, Sergey Lavrov, said Moscow is ready to normalize relations with Washington. He said, the relations with the US are currently worse than during Cold War times due to a lack of mutual respect. Early this month the Biden government slapped Russia by imposing sanctions for meddling in the 2020 presidential election and for involvement in the SolarWind hack of federal agencies. Moscow has denied this activity.

Yesterday, Indonesian Rupiah depreciated 0.10 percent to 14,500 versus the Greenback and the Jakarta Composite Index (JCI) gained 0.24 percent 5,974.47 compared to the previous day. Analysts assess that the second movement on Thursday will tend to be depressed in line with the strengthening of the US dollar after the decision of the Fed meeting.

In the country, improved import values and dividend payment periods by multinational companies are still overshadowing the movement of both in the near future. The prospect of high demand for US dollars will be a deterrent so that the strengthening of the Rupiah in April – May is still limited.

The also sees, prior to the second semester there would be greater pressure coming from improvement in domestic import activity and the possibility of an increase in US Treasury yields. More measured tapering expectation by the Fed and a decrease in US Treasury yields are considered to be a support for the rupiah along with other currencies against the American Dollar.

With this information, the Rupiah is expected to move in the range of 14,450 – 14,550 per US dollar and the JCI is between 5,900 – 6,000. Stocks that can be considered are PT Bank Rakyat Indonesia Tbk (IDX: BBRI), PT Indo Tambangmegah Raya Tbk (IDX: ITMG), PT Unilever Indonesia Tbk (IDX: UNVR), PT Gudang Garam Tbk (IDX: GGRM).

Then, PT Semen Indonesia Tbk (IDX: SMGR), PT Bank Mandiri Tbk (IDX: BMRI), PT Adaro Energy Tbk (IDX: ADRO), PT Bukit Asam Tbk (IDX: PTBA), and PT Vale Indonesia Tbk (IDX: INCO) stocks.

May you have a profitable Day!

Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia