The Federal Reserve has sent across a strong hint that it intends to maintain a low interest rate for a relatively long period of time. Furthermore, many are yet harboring concerns over the strength of the US economic growth.
Jakarta (ANTARA) - The Indonesian rupiah closed 28 points higher, up 0.19 percent, at Rp14,750 against the US dollar in the Jakarta interbank market, Friday evening, prior to the release of the US manpower data in the night.

"The Federal Reserve has sent across a strong hint that it intends to maintain a low interest rate for a relatively long period of time. Furthermore, many are yet harboring concerns over the strength of the US economic growth," PT TRFX Garuda Berjangka Director Ibrahim Assuaibi stated here on Friday.

One of the indicatives of the US economic recovery is the labor market. The manpower data to be released by the US government on Friday night will likely depict that non-farm payrolls in the US will grow 1.4 million in August as compared to 1.76 million a month earlier.

Job opportunities in the US are projected to stand at 11.5 million, lower than the pre-pandemic level. The slow growth may add to pressure on the US policy makers to recommence stalled negotiations for other fiscal packages.

Meanwhile, no progress was achieved in trade negotiations between the United Kingdom and European Union.

On the domestic front, the government is mulling over an amendment to the law on Bank Indonesia, a move that will facilitate the comeback of the Monetary Council akin to that during the New Order regime.

The rupiah opened lower to trade at Rp14,705 per dollar on Friday morning. During the day, the rupiah hovered in the range of Rp14,705-Rp14,797 per dollar.

According to the Bank Indonesia mid-rate on Friday, the rupiah strengthened against the greenback to Rp14,318, from Rp14,792 earlier. Related news: Rupiah to weaken over sentiment arising from debt-sharing policy
Related news: Rupiah appreciates on Monday over low demand for US dollar



Translator: Citro Atmoko/Suharto
Editor: Rahmad Nasution
Copyright © ANTARA 2020