JAKARTA (TheInsiderStories) – Good Morning! Jerome Powell told the United States (US) Congress members will reiterated the Federal Reserve (Fed) plans for longer rates to support the economic recovery. He acknowledge that the recovery has progressed more quickly than expected due to significant part to the unprecedented fiscal and monetary policy actions.
The policymakers also committed to using all full range of tools to support the economy. Currently, the investors are still struggling to deal with surge US bond yields when the Fed decided not to extend a capital concessions for banks.
In Europe, the Turkish Lira tumbled to the low record against the US Dollar and stocks slid after President Tayyip Erdogan shocked decision to replace the central bank governor. And in Asia, foreign minister of Singapore, Vivian Balakrishnan has visited Brunei Darussalam and will go to Malaysia and Indonesia.
He is scheduled to arrive in Malaysia today for a two-day visit to discuss bilateral, regional and international issues with his counterpart, Hishammuddin Hussein, and has schedule to meet Prime Minister Muhyiddin Yassin. End of this week he has bilateral meeting with Indonesian foreign minister, Retno Marsudi and other cabinet members.
Three appearances of Powell plus president of European Central Bank and governor Bank of England in this week is estimating to provide plenty of opportunity for more volatility in markets. In the commodity market, Newcastle coal price for April delivery contract strengthened to US$93.80 a ton, the highest level since November 2018.
Within a week the global thermal coal price has strengthened by 6.89 percent and The current price has also increased 15.09 percent since the beginning of the year until Friday.
Yesterday, Indonesia Rupiah was stagnant at 14,407 per US dollar and the Jakarta Composite Index (JCI) compared to the previous day. The analysts explained that the increase in yields on US bonds continued to make the Greenback move stronger.
This weekend, Two, five, and seven year US treasury auctions are also on investors’ radar. The major US banks should also continue to hold an additional layer of loss-absorbing capital against the US Treasury and central bank deposits from April onwards.
In the country, the statement of the International Monetary Fund that Indonesia is a developing country that has adequate foreign exchange reserves and does not really need high external funding this year in line with the narrowing of the current account deficit has become a positive catalyst on the financial market.
With such information, today the Rupiah is expected to move in the range of 14,390 – 14,450 versus the American Dollar and JCI between 6,260 – 6,389. Stocks that can be watched today are PT Bank Negara Indonesia Tbk (IDX: BBNI), PT Gudang Garam Tbk (IDX: GGRM), PT Aneka Tambang Tbk (IDX: ANTM), PT Adaro Energy Tbk (IDX: ADRO), PT Perusahaan Gas Negara Tbk (IDX: PGAS), PT Astra International Tbk (IDX: ASII), and PT Bank Rakyat Indonesia Tbk (IDX: BBRI).
May you have a profitable Day!
Written by Linda Silaen and Editorial Team, Please Read Our News to Get More information about Indonesia