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The US dollar can weaken but still remain the world's reserve currency

The US dollar can weaken but still remain the world's reserve currency

As a hegemon, the US no longer derives its hegemonic powers from manufacturing and goods
Akash Prakash
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One puzzling aspect of the massive volatility over the past few weeks has been that US safe haven assets, namely the US dollar (USD) and Treasuries, have not exhibited typical risk-off behaviour. Instead of investors flocking to buy US Treasuries and remain invested in the USD, both asset classes have actually weakened. Other safe haven assets like the Swiss franc and the yen have seen the usual flight-to-safety bid, but why have the USD and Treasuries lagged?
The weakness in US Treasuries is linked to the precarious fiscal position of the US, the possibility of dumping of Treasuries by global

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India's trade agreement with EFTA to boost investments by $100 billion
India's trade agreement with EFTA to boost investments by $100 billion

Time of India

time4 hours ago

  • Time of India

India's trade agreement with EFTA to boost investments by $100 billion

Live Events (You can now subscribe to our (You can now subscribe to our Economic Times WhatsApp channel Bern, Switzerland: India's trade agreement with the European Free Trade Association (EFTA) comprising Switzerland, Norway, Iceland and Liechtenstein will come into effect in September, commerce and industry minister Piyush Goyal said on also said talks on a trade deal with the European Union could be concluded 'faster than expected'.India had already created a dedicated desk under Invest India for companies from the EFTA bloc to facilitate investment in India, he said, adding: "It will enter into force by September."The agreement has received approval from the parliaments of all four countries, Goyal said. In Switzerland, there is an objection period open until July 10 when citizens could challenge the pact. July and August are holiday months Delhi and the EFTA nations had signed the Trade and Economic Partnership Agreement (TEPA) on March 10, agreement envisages an investment commitment of $100 billion in 15 years from the grouping into India in lieu of customs duty cuts. This commitment, Goyal said, was included for the first time in a trade who is on a four-day visit to Switzerland and Sweden, said companies in biotech, cybersecurity, healthcare and machinery manufacturing have shown interest in investing in India. A delegation of 90 Indian companies is accompanying Goyal on this visit to meet local leaders and businesses to promote trade and said he held bilateral meetings with over a dozen companies here and most of them are keen to invest in India. He said a delegation of 100 companies had visited India in February and some of them are keen to test market their products"There is a lot of excitement here for India," he said, adding that the trade deal will bring predictability, continuity and stability of the policy regime for investors from both was talking to journalists after his meeting with Swiss industry Minister Narendra Modi's government, which has completed 11 years, has gone from a position of strength to negotiate free trade deals with advanced economies, Goyal Delhi is in talks with the US for a bilateral trade deal, he said. India has already signed an early harvest deal with Australia and is also actively negotiating agreements with New Zealand, Chile, Peru and trade dealAsked about if India is prepared to finalise a trade agreement with the US by prioritising low-hanging fruits, Goyal said: "India is always ready for that and I believe that" the things, which are not controversial, the low-hanging fruits, should be captured first as those sectors will start getting is not necessary to wait for everything and why waste time until it is perfect, he said, citing the example of trade officials are in New Delhi for the trade talks with their Indian counterparts. The week-long deliberations will conclude on June whether the deal can be concluded before July 9, he said: "I am a born optimist".During his meeting with companies here, Goyal suggested they organise board meetings in India so that they can see the investment potential in the country."The world today recognises that the best place to do business is India … India is also a preferred destination for services," he years of governmentTalking about the 11 years of the Modi government, Goyal said close to 2,000 GCC (global capability centres) had been set up in the are all possible because of "good governance" of the last 11 years, he said, while highlighting the reduction in extreme poverty and performance of stock markets. He also cited the gap between the yields on Indian bonds and the US treasury, which has narrowed from 6.3% in 2014 to 1.78% now.'PM Modi had taken the country from being a fragile five to being among the top five economies,' he saidGoyal said the government is trying to create large domestic accountancy firms in India, and the country will soon have its own "Big Four".Global professional services firms Deloitte, PricewaterhouseCoopers, EY and KPMG currently dominate the accountancy space in the country.

India-EFTA trade pact to come into force by September, says Piyush Goyal
India-EFTA trade pact to come into force by September, says Piyush Goyal

India Gazette

time4 hours ago

  • India Gazette

India-EFTA trade pact to come into force by September, says Piyush Goyal

Bern [Switzerland], June 9 (ANI): The landmark free trade agreement between India and the European Free Trade Association (EFTA) is set to become operational by September, Commerce and Industry Minister Piyush Goyal announced on Monday during his visit to Switzerland. EFTA is an inter-governmental organization set up in 1960 for the promotion of free trade and economic integration for the benefit of its four Member States - Switzerland, Iceland, Norway and Liechtenstein. Under the comprehensive pact, EFTA nations have committed to investing $100 billion in India over 15 years. Through reduced or eliminated tariffs, India is expected to provide preferential access to various European products, including Swiss watches, chocolates, and cut and polished diamonds. Speaking to reporters in Bern, Goyal said the agreement has secured parliamentary approval from all four EFTA member countries, 'By September, TEPA will be operationalised. It will enter into force,' the minister stated. He noted that while Switzerland maintains an objection period open until July 10, the summer holidays of July and August are not expected to delay implementation. During his Swiss visit, which focused on strengthening bilateral trade and investment ties, Goyal held meetings with over a dozen companies These companies have expressed particular enthusiasm for opportunities in a range of sectors including pharmaceuticals, cybersecurity, and machinery manufacturing sectors. 'There's tremendous excitement here for India,' Goyal observed, highlighting Switzerland's growing confidence in India as an investment destination. Beyond the EFTA agreement, India is actively pursuing trade partnerships with other countries. Goyal revealed negotiations with New Zealand, Chile, Peru, Oman, and the European Union. He said EU trade pact could be finalised 'faster than expected.' The minister also indicated progress on a bilateral investment treaty with the EU. Goyal emphasised India's manufacturing potential, particularly in machinery production, where the country allows 100% foreign direct investment. This strategy aims to reduce India's dependence on Chinese machinery for imports while positioning the country as a manufacturing hub. He cited the air conditioning sector as a success story, where government initiatives like the Production Linked Incentive (PLI) scheme have increased local manufacturing content from 20% to 65%, with targets to reach 80% within three years. Reflecting on India's economic progress under 11 years of NDA governance, Goyal said the country has emerged as a premier global business destination. He highlighted the presence of nearly 2,000 Global Capability Centres in India, underscoring the nation's emergence as a preferred location for both manufacturing and services. 'The world today recognises that the best place to do business is India,' Goyal said, attributing this transformation to sustained good governance and strategic policy implementation. The EFTA agreement represents another step in India's broader strategy to diversify trade partnerships and integrate more deeply into global value chains while attracting significant foreign investment to fuel domestic economic growth. (ANI)

Silver price today: Precious metal hits new all-time high of ₹1.07 lakh per kilo; gold trades flat on MCX
Silver price today: Precious metal hits new all-time high of ₹1.07 lakh per kilo; gold trades flat on MCX

Mint

time7 hours ago

  • Mint

Silver price today: Precious metal hits new all-time high of ₹1.07 lakh per kilo; gold trades flat on MCX

Silver price today: Silver prices in India's Multi Commodity Exchange (MCX) jumped nearly 1.43 per cent or by ₹ 1,506 on Monday, 9 June 2025, in line with the global cues. Silver futures of the July contract jumped over 1.43 per cent to hit an all-time high of ₹ 1,07,073 per kilogram before closing at ₹ 1,06,965 per kilo on Monday, compared to ₹ 1,05,459 per kilo at the previous commodity market session, according to the MCX data. On the other hand, gold futures for the August contract were flat with 0.04 per cent gains at ₹ 97,077 per 10 grams on Monday, compared to ₹ 97,036 at the previous commodity market session. Silver prices soared ₹ 1,000 to hit a fresh peak of ₹ 1,08,100 per kilogram in the national capital on Monday, in line with firm global cues, according to the All India Sarafa Association, reported the news agency PTI. On Saturday, the metal traded flat at ₹ 1,07,100 per kg (inclusive of all taxes). Prior to that, the white metal on Friday had soared ₹ 3,000 to hit another record high of ₹ 1,07,100 per kilogram. Traders said silver prices surged due to strong investor demand, a weak dollar against major currencies, heightened geopolitical tensions, and firm industrial demand from the EV and solar sectors. Gold of 99.9 per cent purity fell ₹ 280 to ₹ 97,780 per 10 grams (inclusive of all taxes) on Monday. The precious metal had declined by ₹ 1,630 to ₹ 98,060 per 10 grams on Saturday. The yellow metal of 99.5 per cent purity dipped ₹ 250 to ₹ 97,350 per 10 grams (inclusive of all taxes). It had depreciated by ₹ 1,500 to ₹ 97,600 per 10 grams in the previous market close. Globally, spot gold rose marginally to USD 3,312.84 per ounce. 'Gold consolidated in the lower end of its range on Monday amid mixed signals. The highly anticipated talks between the US and China have raised hopes that the two largest economies can make progress on various disputes, which could reduce demand for safe havens'. 'Additionally, the latest Nonfarm Payrolls report in the US was strong, prompting traders to re-evaluate their expectations regarding a potential easing of monetary policy by the Federal Reserve, which also serves as a headwind for the yellow metal,' Saumil Gandhi, Senior Analyst, Commodities at HDFC Securities, said. Spot silver rose 0.9 per cent to USD 36.30 per ounce in the international market. 'Silver prices stood out with strong gains hitting a 13-year high on the global stage and achieving lifetime highs in the domestic markets,' Mehta Equities' Vice-President, Commodities Rahul Kalantri said. 'Improving sentiment from softer European inflation and trade optimism helped silver breach the USD 36 per ounce level, breaking out of a long-standing consolidation range,' Kalantri added.

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