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Yahoo
2 days ago
- Business
- Yahoo
U.S. Trade Court Ruling Sends 30-Year Treasury Yield Above 5%
U.S. Treasury yields are climbing swiftly, with the 30-year yield rising back above 5% and the 10-year jumping to 4.50% after the U.S. Court of International Trade ruled President Donald Trump's key tariff measures illegal. The court said Congress had exclusive authority to regulate trade with other countries, and the president exceeded his authority by invoking emergency economic powers not intended for imposing broad trade levies, according to news service reports. While Wednesday's ruling nullifies the general 10% and reciprocal duties, it does not affect sector-specific tariffs like those on steel or autos. The administration said it plans to appeal the ruling. Over the past two sessions, the 10-year yield has rise from 4.40%, underscoring how sensitive the bond market remains to policy shifts and geopolitical developments. Despite the ruling, macro uncertainty continues to loom large. As the Kobeissi Letter points out, tensions between the U.S. and China are far from easing. The U.S. has ordered domestic chip designers to halt sales to China, paused exports of critical chip software and jet-engine technologies, and announced plans to begin revoking visas of Chinese students in a signal of a renewed push toward decoupling. The Dollar Index (DXY), a measure of the U.S. currency's value against a basket of trade partners, has responded in kind, climbing to 100 from 98 as investors flock to the dollar amid global uncertainty and rising yields. Meanwhile, both bitcoin BTC and gold remain in a holding pattern, suggesting markets are bracing for the next major policy move or geopolitical surprise. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Reuters
3 days ago
- Business
- Reuters
Rupee ends nearly flat, wedged between importer dollar bids and Asia FX uptick
MUMBAI, May 28 (Reuters) - The Indian rupee ended nearly flat on Wednesday, as the impact of month-end dollar demand from importers was offset by an uptick in regional peers. The rupee closed at 85.36 against the U.S. dollar from 85.33 in the previous session. The unit weakened to 85.70 earlier in the session, but recouped most losses as the dollar index eased. Traders built up intra-day shorts on the rupee in anticipation of outflows related to an equity block deal but the price action indicated that the flows did not materialise as expected, a trader at a Mumbai-based bank said. British American Tobacco sold a $1.5 billion stake in Indian consumer goods company ITC ( opens new tab on Tuesday. India's benchmark equity indexes closed slightly in the red. The dollar index was last at 99.5, little changed on the day while the Korean won and Thai baht led gains in Asian currencies with a 0.4% rise. The minutes of the Federal Reserve's May policy meeting are due later in the day and will be in focus for cues on policymakers' thinking on the future trajectory of interest rates amid uncertainty spurred by U.S. trade policies. "The details will be important in providing a sense of the level of conviction on the Fed's willingness to remain on the side-lines in order to assess the uncertainty created by trade tariffs," MUFG Bank said in a note. Interest rate futures are currently pricing in nearly two U.S. rate cuts over 2025. India's overnight index swaps have priced in at least two rate cuts by the Reserve Bank of India as well, supporting a bullish outlook for the country's sovereign bonds.
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Business Standard
4 days ago
- Business
- Business Standard
Indian Rupee ends at 85.34/$; slips 25 paise on dollar recovery
The Indian Rupee closed lower on Tuesday, weighed down by a rebound in the dollar index and oil prices, alongside a decline in domestic equities. The domestic currency closed 25 paise weaker at 85.34 against the US dollar, after ending at 85.09 on Monday, according to Bloomberg. During the previous session, the currency rose past the 85 mark and went as high as 84.82 against the greenback. The local unit was expected to be in a range of 84.75 to 85.50, with an expectation of a Zomato outflow of $900 million due to the MSCI rebalancing, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. The US President Donald Trump, on Monday, extended the deadline for 50 per cent European Union tariffs until July 9. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.43 per cent at 99.36. The Dollar Index continuing to trade near the 99.00 level is acting as a tailwind for the rupee, Amit Pabari, managing director at CR Forex Advisors. "Add to that, subdued Brent crude prices are helping keep India's trade deficit under control." Moreover, the upcoming slew of initial public offerings is set to boost the FII inflows, further supporting the rupee. However, speculation of a Reserve Bank of India (RBI) rate cut in the upcoming MPC meeting is also weighing on the short-term rupee, Pabari said. "The rupee is likely to face strong resistance near 85.50 levels and every uptick is a selling opportunity, while the immediate support would be 84.80-84.90." Meanwhile, profit booking among select blue-chip stocks at higher levels dragged the benchmark equity indices lower on Tuesday.
Time of India
4 days ago
- Business
- Time of India
Gold vs Bitcoin: Why global central banks are choosing gold as dollar reserves dwindle
As central banks worldwide accelerate their gold purchases to unprecedented levels and steer clear of Bitcoin, economist Peter Schiff sees a clear signal about the future of money. Tired of too many ads? go ad free now In a recent post on the social media platform X, the vocal gold advocate reignited the debate between traditional bullion and cryptocurrencies, questioning why global monetary authorities are increasingly relying on gold as a hedge against a post-dollar era. "If gold is the past and Bitcoin is the future, why are foreign central banks that are preparing for a future where the U.S. dollar is no longer the reserve currency, replacing their dollar reserves with gold and not Bitcoin?" Economist Peter Schiff posted on X. Schiff's comments come amid a sustained increase in central bank gold acquisitions, with annual purchases now exceeding 1,000 metric tons—more than double the decade-long average, according to Reuters. The economist, known for his scepticism toward cryptocurrencies, argues this trend reflects mounting distrust in the US dollar and underscores gold's enduring role as a reliable reserve asset. In a follow-up post, Schiff pointed out, 'The Dollar Index had its lowest weekly close in over three years, 30-year Treasuries had the lowest weekly close in almost two years, and gold had its highest weekly close ever. The world is divesting of US dollars and bringing their money home to buy gold and invest locally.' This gold accumulation is not a recent development. Nations like Russia have steadily expanded their gold reserves since 2014 to shield themselves from Western sanctions and geopolitical isolation. Schiff notes that this approach now serves as a model for other emerging markets, especially in light of ongoing global uncertainty fueled by former President Donald Trump's tariff-focused trade policies. Tired of too many ads? go ad free now Challenging Bitcoin's status as the currency of the future, Schiff asks, 'If Bitcoin is the future, why are central banks betting on gold to replace the dollar?' Despite Bitcoin's recent price rally, which touched $108,148, central banks have yet to accept it as a dependable store of value. Gold's stability outshines crypto volatility Gold's appeal has been further strengthened by rising geopolitical risks, turbulent global bond markets, and uncertainty surrounding US fiscal policy. Schiff contrasts this with Bitcoin's notorious price volatility and limited institutional trust, asserting, 'Gold has proven itself as a safe asset during periods of tension,' citing its resilience through multiple economic cycles and financial crises. Gold prices saw a slight dip on Tuesday, with spot gold falling 0.5% to $3,325.99 per ounce, while US gold futures dropped 1.2% amid a rebound in the US dollar index. In India, June gold futures opened slightly higher at Rs 96,050 per 10 grams, recovering from a mid-May low. Despite the recent price decline, analysts believe gold remains firmly supported by broader macroeconomic concerns, reported ET. Manoj Kumar Jain from Prithvifinmart Commodity Research said, 'Weakness in the dollar index, geopolitical tensions, and global uncertainty are supporting safe-haven buying for precious metals.' He added that gold could find strong support near $3,200 per troy ounce in upcoming sessions. Rahul Kalantri, VP Commodities at Mehta Equities, noted investor caution ahead of key US economic data releases, including the FOMC minutes and PCE inflation data. 'A widening US deficit and geopolitical tensions continue to support gold, especially as markets weigh the Fed's interest rate outlook,' he said. As central banks continue to articulate their long-term monetary strategies through record bullion purchases, Schiff's pointed question remains: If cryptocurrencies are truly the future of money, why are governments doubling down on gold?
Economic Times
4 days ago
- Business
- Economic Times
Why are central banks choosing gold over Bitcoin? Peter Schiff revives debate amid record bullion buying
Tired of too many ads? Remove Ads Tired of too many ads? Remove Ads Volatility still haunts crypto, strengthens gold's case Dollar volatility keeps precious metals in focus Central banks around the world are stockpiling gold at a record pace and eschewing Bitcoin, and that speaks volumes about the future of money, according to economist Peter Schiff. In a pointed post on microblogging site X, the outspoken gold advocate reignited the debate over bullion versus crypto, questioning why global monetary authorities are turning to the yellow metal as they hedge against a post-dollar remarks come amid a sustained surge in central bank gold buying, with institutions now purchasing over 1,000 metric tons of gold annually — more than double the historical average of the past decade, according to a Reuters report. The economist, a long-standing critic of cryptocurrencies, said this trend reflects deepening distrust in the U.S. dollar and reinforces gold's time-tested status as a resilient reserve a separate post, Schiff added, "The Dollar Index had its lowest weekly close in over three years, 30-year Treasuries had the lowest weekly close in almost two years, and gold had its highest weekly close ever. The world is divesting of U.S. dollars and bringing their money home to buy gold and invest locally."The move toward gold accumulation is not new. Countries like Russia have been steadily adding to their gold holdings since 2014, as a shield against Western sanctions and increasing geopolitical isolation. Schiff pointed to this example as a blueprint that other emerging markets are now following, especially in the wake of former President Donald Trump's tariff-heavy trade policies, which continue to generate global unease about the long-term stability of the U.S. dollar."If Bitcoin is the future, why are central banks betting on gold to replace the dollar?" Schiff added, stressing his argument that despite the rise in Bitcoin's price, which recently touched $108,148, central banks have yet to embrace the asset as a reliable store of appeal has been bolstered by rising geopolitical risks, volatility in global bond markets, and persistent uncertainty around U.S. fiscal policy. In contrast, Schiff argues that Bitcoin remains plagued by price instability and limited institutional trust. "Gold has proven itself as a safe asset during periods of tension," he noted, pointing to its performance across multiple economic cycles and financial prices saw a modest retreat on Tuesday. Spot gold dipped 0.5% to $3,325.99 an ounce as of 05:37 GMT, while U.S. gold futures fell 1.2% to $3,325.70 amid a rebound in the U.S. dollar index. In India, June gold futures opened slightly higher at Rs 96,050 per 10 grams, a Rs 5,160 gain from the mid-May low of Rs 90, the dip, analysts believe gold remains underpinned by broader macro risks. Manoj Kumar Jain of Prithvifinmart Commodity Research said, 'Weakness in the dollar index, geopolitical tensions, and global uncertainty are supporting safe-haven buying for precious metals.' He added that gold could find support near $3,200 per troy ounce in the coming Kalantri, VP Commodities at Mehta Equities, said investors are cautious ahead of key U.S. data releases, including the FOMC minutes on Wednesday and PCE inflation data on Friday. 'A widening U.S. deficit and geopolitical tensions continue to support gold, especially as markets weigh the Fed's interest rate outlook,' he central banks signal their long-term strategy through their bullion buying spree, Schiff's challenge to Bitcoin advocates hangs in the air: If crypto is indeed the currency of the future, why are governments still choosing gold?(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times)
