
Bank of Korea to lower interest rates cautiously, minutes show
SEOUL, June 17 (Reuters) - Board members of South Korea's central bank said it was necessary to continue to ease monetary policy to support economic growth, but with caution over associated risks, minutes of their May 29 policy meeting showed on Tuesday.
Last month, the Bank of Korea lowered interest rates by 25 basis points to 2.50% in an unanimous decision.
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Rupee hits over two-month low, hurt by geopolitical worries, Trump tariff remark
MUMBAI, June 17 (Reuters) - The Indian rupee hit its weakest level in more than two months on Tuesday, hurt by worries over geopolitical tensions in the Middle East and U.S. President Donald Trump's remark that pharmaceutical tariffs were coming very soon. The rupee declined to 86.28 against the U.S. dollar near the end of the trading session, its weakest level since April 9, before closing at 86.24, down 0.2% on the day. Speaking to reporters on Air Force One on the way back from attending a meeting of G7 leaders, Trump said that pharmaceutical tariffs were coming very soon. The rupee extended its losses after the statement, traders said. Indian drugmakers earn a significant share of their revenue from the United States. India's pharma exports to the U.S. stood at $8.73 billion in fiscal year 2024, accounting for about one-third of the industry's overall exports, as per data from government-backed trade body Pharmaceuticals Export Promotion Council of India. Asian currencies were down between 0.1% and 0.5% while the dollar index was steady at 98.1. Brent crude oil futures rose more than 1% to $74.30 per barrel with analysts saying that uncertainty over the Iran-Israel conflict would keep prices elevated. Dollar demand from state-run banks also weighed on the rupee, a trader at a private bank said. "A close over 86.10 indicates that a bullish bias may start to build on USD/INR in the near-term," the trader said. India's benchmark equity index, the Nifty 50 (.NSEI), opens new tab, fell about 0.3%, in line with losses in most regional peers. While the focus will remain on geopolitical developments in the Middle East, traders are also awaiting the Federal Reserve's policy decision on Wednesday. With the central bank widely expected to keep policy rates unchanged, its projections for policy rates and commentary from Chair Jerome Powell will be in the spotlight.


Reuters
an hour ago
- Reuters
PetroChina eyes North American LNG volumes to reduce risk, says exec
KUALA LUMPUR, June 17 (Reuters) - PetroChina International, the trading arm of the Chinese oil major ( opens new tab, says it is interested in North American liquefied natural gas supplies as it seeks to reduce trading risk by seeking flexibility in supply deals, said a company executive on Tuesday. "If I look at our portfolio today, I think we're slightly overweight on duration. I think we signed too many, very long term, take-or-pay SPAs (sales and purchase agreements)," said Zhang Yaoyu, assistant chief executive and global head of LNG. He added that Asia and China as a whole need more flexibility in their LNG term deals, and that is something that PetroChina International actively tries to "derisk upon." "We firmly believe the diversification process has significantly improved the resiliency of the portfolio, and that's something that we have been working really hard on." Zhang also said that the company's portfolio is slightly overweight on inflexible term supply volumes, and it would be interested in taking on some North American positions. LNG buyers and traders may seek term contracts without destination restrictions so they can resell cargoes when demand is low. Many supply deals from U.S. sellers do not have destination restrictions.


Reuters
an hour ago
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Swedish government plans to ease mortgage rules to help first-time buyers
STOCKHOLM, June 17 (Reuters) - Sweden's government said on Tuesday it planned to ease mortgage rules to help first-time buyers and those without capital for a deposit to get into the housing market. Under the plan, people wanting a mortgage will be able to borrow up to 90% of the value of their property, up from the current 85%. A current requirement for the heaviest borrowers to pay back 3% of their loan each year will be dropped. The new rules are expected to be introduced at the start of next year. "The new proposals will make it easier, for example, for first-time buyers and young families to get onto the property ladder," Housing Minster Andreas Carlson said. "At the same time, we have taken into consideration financial stability through measures to hold back indebtedness." The proposal broadly reflects recommendations in a white paper last November. Critics have said that tough mortgage rules, introduced after the financial crisis of 2008-9, are necessary to reduce risks in the banking system. Swedish home-owners are among the most highly indebted in Europe, with debts of around 180% of disposable income, down from a peak of around 200% in 2021. Most mortgages are floating rate, making households sensitive to interest rate changes and amplifying swings in the economy. The government said it also planned to strengthen the central bank's role in macroprudential oversight. The central bank will take over responsibility for setting the level of banks' countercyclical financial buffer, which has up to now been set by the Financial Supervisory Authority.