Pound plunges to one-month low against dollar; GBPINR edges slightly higher
The British pound plunged to a one-month low against a firm dollar overseas as markets sentiments turned risk averse amid boiling tensions in Middle East and investor flocked to safe haven dollar for respite. The demand for the US Dollar as a safe-haven asset increased, with the US Dollar Index revisiting two-week high above 99 mark. Over the weekend, US President Donald Trump reportedly said that Washingtons military forces have successfully demolished Iranian nuclear facilities: Fordow, Natanz, and Isfahan. Meanwhile data from UK showed better-than-projected flash S&P Global Purchasing Managers Index (PMI) data for June. The Composite PMI came in at 50.7, higher than estimates of 50.5 and the prior release of 50.3. GBPUSD is currently seen quoting weaker by over half a percent at $1.3400. On the NSE, GBPINR futures are trading higher by 0.17% at 116.89.
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India.com
40 minutes ago
- India.com
India-US Trade Deal To Increase US Exports To India: Crisil
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Economic Times
42 minutes ago
- Economic Times
L&T lists India's 1st ESG bonds on NSE, raises Rs 500 crore
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Time of India
44 minutes ago
- Time of India
US business activity moderates; price pressures building up
U.S. business activity experienced a slight slowdown in June, while prices increased due to President Trump's tariffs on imported goods. Input costs for manufacturers surged, leading to higher prices for consumers. Economists anticipate an acceleration in inflation during the second half of the year, potentially influencing the Federal Reserve's monetary policy decisions. Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads INFLATION POISED TO ACCELERATE Tired of too many ads? Remove Ads U.S. business activity slowed marginally in June, though prices increased further amid President Donald Trump's aggressive tariffs on imported goods, suggesting that an acceleration in inflation was likely in the second half of the survey from S&P Global on Monday showed measures of prices paid by factories for inputs and charged for finished products jumped to levels last seen in 2022. Nearly two-thirds of manufacturers reporting higher input costs attributed these to tariffs while just over half of respondents linked increased selling prices to tariffs, S&P Global supports economists' expectations that inflation would surge from June following mostly benign consumer and producer price readings in recent months. Economists have argued that inflation has been slow to respond to Trump's sweeping import duties because businesses were still selling stock accumulated before the tariffs came into effect.S&P Global's flash U.S. Composite PMI Output Index, which tracks the manufacturing and services sectors, slipped to 52.8 this month from 53.0 in May. A reading above 50 indicates expansion in the private survey's flash manufacturing PMI was unchanged at 52.0. Economists polled by Reuters had forecast the manufacturing PMI easing to 51.0. Its flash services PMI dipped to 53.1 from 53.7 in May. Economists had forecast the services PMI falling to 53.0. The survey was conducted in the June 12-20 period, before the U.S. joined in the conflict between Israel and Iran."The June flash PMI data indicated that the U.S. economy continued to grow at the end of the second quarter, but that the outlook remains uncertain while inflationary pressures have risen sharply in the past two months," said Chris Williamson, chief business economist at S&P Global Market hard data on retail sales, housing and the labor market have painted a picture of an economy that was softening because of the uncertainty caused by the constantly shifting tariffs policy. The escalation in tensions in the Middle East added another layer of S&P Global survey's measure of new orders received by businesses declined to 52.3 from 53.0 in May. A measure of prices paid by businesses for inputs fell to 61.6 from 63.2 last month. But manufacturers faced higher input costs, with this price gauge jumping to 70.0 this month. That was the highest reading since July 2022 and followed 64.6 in paid for inputs by services businesses remained elevated, with tariffs, higher financing, wage and fuel costs cited. The pace of increase, however, slowed amid survey's measure of prices charged by businesses for goods and services remained at lofty levels as manufacturers passed on the increased costs from tariffs to consumers. The prices charged gauge for manufacturers shot up to 64.5, the highest since July 2022, from 59.7 in oil prices because of the strife in the Middle East are seen contributing to higher Federal Reserve last week kept the U.S. central bank's benchmark overnight interest rate in the 4.25%-4.50% range, where it had been since December. Fed Chair Jerome Powell told reporters he expected "meaningful" inflation ahead."The data therefore corroborate speculation that the Fed will remain on hold for some time to both gauge the economy's resilience and how long this current bout of inflation lasts for," Williamson picked up this month, mostly driven by manufacturing, where some factories are experiencing order backlogs. S&P Global noted a slight rise in optimism among manufacturers "in part reflecting hopes of greater benefits from trade protectionism."It, however, added that "companies generally remained less upbeat than prior to the inauguration of President Trump."
