Yuan's quiet sell-off seen helping grow exports beyond US
TOSHIHIRO SATO
TOKYO --The yuan has weakened against a wide range of global currencies, except the dollar, in a sign that Beijing may be trying to boost its export competitiveness with trade partners other than the U.S.
The China Foreign Exchange Trade System's yuan index, administered by the People's Bank of China, dropped to 95.49 on June 13, the lowest level since December 2020. As of Friday, it had recovered only to 95.92.
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Yomiuri Shimbun
15 hours ago
- Yomiuri Shimbun
India Pauses Plans to Buy U.S. Arms after Trump's Tariffs
NEW DELHI, Aug 8 (Reuters) – New Delhi has put on hold its plans to procure new U.S. weapons and aircraft, according to three Indian officials familiar with the matter, in India's first concrete sign of discontent after tariffs imposed on its exports by President Donald Trump dragged ties to their lowest level in decades. India had been planning to send Defence Minister Rajnath Singh to Washington in the coming weeks for an announcement on some of the purchases, but that trip has been canceled, two of the people said. Trump on Aug. 6 imposed an additional 25% tariff on Indian goods as punishment for Delhi's purchases of Russian oil, which he said meant the country was funding Russia's invasion of Ukraine. That raised the total duty on Indian exports to 50% – among the highest of any U.S. trading partner. The president has a history of rapidly reversing himself on tariffs and India has said it remains actively engaged in discussions with Washington. One of the people said the defense purchases could go ahead once India had clarity on tariffs and the direction of bilateral ties, but 'just not as soon as they were expected to.' Written instructions had not been given to pause the purchases, another official said, indicating that Delhi had the option to quickly reverse course, though there was 'no forward movement at least for now.' Post publication of this story, India's government issued a statement it attributed to a Ministry of Defence source describing news reports of a pause in the talks as 'false and fabricated.' The statement also said procurement was progressing as per 'extant procedures.' Delhi, which has forged a close partnership with America in recent years, has said it is being unfairly targeted and that Washington and its European allies continue to trade with Moscow when it is in their interest. Reuters is reporting for the first time that discussions on India's purchases of Stryker combat vehicles made by General Dynamics Land Systems and Javelin anti-tank missiles developed by Raytheon and Lockheed Martin LMT.N have been paused due to the tariffs. Trump and Indian Prime Minister Narendra Modi had in February announced plans to pursue procurement and joint production of those items. Singh had also been planning to announce the purchase of six Boeing P8I reconnaissance aircraft and support systems for the Indian Navy during his now-canceled trip, two of the people said. Talks over procuring the aircraft in a proposed $3.6 billion deal were at an advanced stage, according to the officials. Boeing, Lockheed Martin and General Dynamics referred queries to the Indian and U.S. governments. Raytheon did not return a request for comment. RUSSIAN RELATIONS India's deepening security relationship with the U.S., which is fueled by their shared strategic rivalry with China, was heralded by many U.S. analysts as one of the key areas of foreign-policy progress in the first Trump administration. Delhi is the world's second-largest arms importer and Russia has traditionally been its top supplier. India has in recent years however, shifted to importing from Western powers like France, Israel and the U.S., according to the Stockholm International Peace Research Institute think-tank. The shift in suppliers was driven partly by constraints on Russia's ability to export arms, which it is utilizing heavily in its invasion of Ukraine. Some Russian weapons have also performed poorly in the battlefield, according to Western analysts. The broader U.S.-India defense partnership, which includes intelligence sharing and joint military exercises, continues without hiccups, one of the Indian officials said. India also remains open to scaling back on oil imports from Russia and is open to making deals elsewhere, including the U.S., if it can get similar prices, according to two other Indian sources. Trump's threats and rising anti-U.S. nationalism in India have 'made it politically difficult for Modi to make the shift from Russia to the U.S.,' one of the people said. Nonetheless, discounts on the landing cost of Russian oil have shrunk to the lowest since 2022. India's petroleum ministry did not immediately respond to a request for comment. While the rupture in U.S.-India ties was abrupt, there have been strains in the relationship. Delhi has repeatedly rebutted Trump's claim that the U.S. brokered a ceasefire between India and Pakistan after four days of fighting between the nuclear-armed neighbors in May. Trump also hosted Pakistan's army chief at the White House in the weeks following the conflict. In recent months, Moscow has been actively pitching Delhi on buying new defense technologies like its S-500 surface-to-air missile system, according to one of the Indian officials, as well as a Russian source familiar with the talks. India currently does not see a need for new arms purchases from Moscow, two Indian officials said. But Delhi is unlikely to wean itself off Russian weapons entirely as the decades-long partnership between the two powers means Indian military systems will continue to require Moscow's support, one of the officials said. The Russian embassy in Delhi did not immediately respond to a request for comment.
Nikkei Asia
a day ago
- Nikkei Asia
Gold futures climb to fresh record after report of US tariff move
(Reuters) -- U.S. gold futures surged to a record on Friday after a report that Washington has imposed tariffs on imports of 1-kilogram bullion bars, widening the spread between New York futures and spot prices. December U.S. gold futures were up 0.7% to $3,476.70, after hitting a record $3,534.10. Spot gold was down 0.3% at $3,386.63 per ounce as of 1151 GMT. Bullion is on track for a second straight weekly gain, up 0.7% so far this week. The futures-spot spread widened to more than $100 after the Financial Times reported that the United States had imposed tariffs on imports of 1-kg gold bars, citing a July 31 Customs and Border Protection letter. The letter said 1-kg and 100-ounce gold bars should be classified under a customs code subject to higher duties. "Given the volatility of U.S. trade-related decision-making, it is difficult to make longer-term predictions, but assuming a scenario in which tariffs remain in place ... one would expect spot prices to be affected and to rise, narrowing the spread relative to the futures," said Ricardo Evangelista, senior analyst at ActivTrades. Switzerland is the world's largest gold refining hub and the major exporter to the United States. U.S. President Donald Trump's higher tariffs on imports from dozens of countries kicked in on Thursday, leaving major trade partners such as Switzerland, Brazil and India hurriedly searching for a better deal. "All developments ... for now solidify the London spot price as the most reliable source telling us what the real value of gold is," said Saxo Bank's head of commodity strategy, Ole Hansen. "Spot prices remain stuck in a range since April, with a break above $3,450 needed to change that." Gold, a traditional safe-haven asset, is also drawing support from expectations that the Federal Reserve will cut interest rates next month. Weaker U.S. payroll data last week pushed CME Group's FedWatch Tool to price in an 89% chance of a 25-basis-point cut in September. Elsewhere, spot silver was steady $38.31 per ounce, platinum fell 0.5% at $1,326.91 and palladium was down 2.3% at $1,124.93.
Nikkei Asia
a day ago
- Nikkei Asia
Olympus' American CEO vows to bolster stock price after FDA rap
Bob White, the new Olympus CEO, attributed the medical device maker's 38% fall in first quarter net profits to "challenging conditions," including U.S. tariffs and a regulatory alert. (Nikkei montage/Source photos Kosuke Imamura and Reuters) MITSURU OBE TOKYO -- The new American president and CEO of Olympus on Friday vowed a speedy response to fresh safety issues raised by U.S. regulators, seeking to restore customer confidence and revive a share price that has fallen by nearly half from its 2022 peak.
