Capital market in indonesia and exchange rate

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One of services provided Investment Bank give advice to firms when securities should be offered, and it also give advice should raise capital by selling stocks or by selling bonds or borrow. The economic news, Federal Reserve Chairman Jerome Powel on 14 July 2021, said an inflation data higher than expected. The inflation data in recently came from Consumer Price Index in US year on year was 5.32 in June 2021 compared to January 2021 was 1.4. From based news of the inflation data, if you are work as an advisor from Investment Bank in US:

-What do you suggestion to the firm whether to borrow or raise funds from issue debt or equity instruments? Give your analysis

-What kind of risks will be face to Investment Bank and to the Firm?

-What is the impact to capital market in Indonesia and exchange rate in Rupiah against USD, if Bank Indonesia and Government not anticipated to the news?

Reference no: EM132953036

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