JAKARTA (TheInsiderStories) — Good morning! Indonesian Rupiah is on the move with highest hike among other Asian currencies. The local currencies against US Dollar bolstered by 0.85 percent to 14,350 in the last week’s trade.
Foreign inflows entered the stock market recorded Rp393.01 billion (US$27.10 million) and brought the Jakarta Composite Index rose by 0.86 percent to 6,274.54. The strongest gain is mining sector with 3.6 percent.
The mirthful market is supported by United States (US) and China plan to discuss trade issues, as both have agreed for truce after months of trade tariff retaliations. US Trade Deputy Minister Jeffrey Gerrish will lead the delegation to Beijing, Jan. 7 to 8.
Still from the US, amid dispute with President Donald Trump, Federal Reserve (Fed) Governor Jerome Powell stated that he would not stepped down from his position, even though the leader urges him. Word on the street since December last year, Trump planned to fire him.
Trump several times criticised Powell’s policy for increasing Fed rate, and called The Fed as “loco”. He is frustrated over the monetary policy tightening that makes economic slowdown. In 2018, The Fed increased the reference rate for 4 times.
Other than that, Trump threatened to partially shutdown US government for months or even years, if he doesn’t receive $5 million funding for building border wall. He gave the statement following parliament voting to re-open the government and give $1.3 million funding for border security. But the parliament decision halted in senate that dominated by Republicans.
Then, Trump said that he would take controversial steps by declaring state’ emergency and building border wall without congress agreement. By this government shutdown, 800,000 federal employees work without pay, and some government institutions have been closed for 2 weeks.
Ahead of this week, Indonesia will publish its retail sales survey report, prompt manufacturing index, and business activity survey report. Some Asian countries like China, Japan, and India will announce their foreign exchange reserve.
Furthermore European Central Bank will set its monetary policy, while European Union to release several economic data. Meanwhile, US to report trade balance data. Powell will also speak as expected to drop subtle clues regarding future monetary policy. Previously, he said that US inflation will bring bigger flexibility to manage monetary policy for the further year.
May you have a profitable week!
Written by Linda Silaen and TIS Intelligence Team, Please Read Our Insight to Get More information about Indonesia