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Business Standard
12 hours ago
- Business
- Business Standard
Dollar index attempts recovery from 2-week low
The dollar index is seen incurring mild gains although it continues to linger around a two week low on Wednesday. US President Donald Trump reportedly announced a trade deal with Japan that includes a 15% tariff on Japanese exports to the US. As part of the agreement, Japan will invest $550 billion in the US and open its markets to key American products. However, Trumps constant criticism about the Powell and investors doubts surrounding independence of Fed is keeping sentiments tepid. US Treasury yields continued to drop as the 10-year Treasury note slumps over five basis points (bps) to 4.332%, dragging on the greenback. The US Dollar Index (DXY), which tracks the greenbacks performance against a basket of six currencies, is near a two week low of 97.25. Investors now brace for US S&P Global Purchasing Managers Index (PMI) data for July, due this week and FOMC statement next week for further clarity on Federal stance.
Barnama
16 hours ago
- Business
- Barnama
Ringgit Extends Gains To Close Higher Amid Japan Political Uncertainty
WORLD By Fatin Umairah Abdul Hamid KUALA LUMPUR, July 21 (Bernama) -- The ringgit extended its gains against the US dollar at Monday's close, as the greenback struggled to appreciate amid political uncertainties in Japan, said an analyst. At 6 pm, the ringgit rose to 4.2320/2365 against the greenback, compared to Friday's close of 4.2410/2455. SPI Asset Management managing partner Stephen Innes said the ringgit trended higher, supported by the election setback for Japan's Prime Minister Shigeru Ishiba's coalition, which did not trigger broader market volatility. 'The absence of contagion allowed Asian and other emerging market currencies, including the ringgit, to edge higher and strengthen modestly,' he told Bernama. Echoing Innes, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit traded firmer in tandem with a 0.13 per cent decline in the US Dollar Index to 98.268 points, as major currencies such as the euro, yen, and the British pound all appreciated against the greenback. 'Despite uncertainties surrounding Japanese politics, the US dollar is struggling to appreciate, yet this has not resulted in a weak Japanese yen,' he said. On that note, Mohd Afzanizam said the ringgit was generally firmer against the US dollar, with the pair hovering around RM4.2375 in the afternoon, compared to RM4.2493 during the morning session. At the close, the ringgit was traded mostly higher against a basket of major currencies.
The Star
2 days ago
- Business
- The Star
Ringgit extends gains to close higher amid Japan political uncertainty
KUALA LUMPUR: The ringgit extended its gains against the US dollar at Monday's close, as the greenback struggled to appreciate amid political uncertainties in Japan, said an analyst. At 6 pm, the ringgit rose to 4.2320/2365 against the greenback, compared to Friday's close of 4.2410/2455. SPI Asset Management managing partner Stephen Innes said the ringgit trended higher, supported by the election setback for Japan's Prime Minister Shigeru Ishiba's coalition, which did not trigger broader market volatility. "The absence of contagion allowed Asian and other emerging market currencies, including the ringgit, to edge higher and strengthen modestly,' he told Bernama. Echoing Innes, Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said the ringgit traded firmer in tandem with a 0.13 per cent decline in the US Dollar Index to 98.268 points, as major currencies such as the euro, yen, and the British pound all appreciated against the greenback. "Despite uncertainties surrounding Japanese politics, the US dollar is struggling to appreciate, yet this has not resulted in a weak Japanese yen,' he said. On that note, Mohd Afzanizam said the ringgit was generally firmer against the US dollar, with the pair hovering around RM4.2375 in the afternoon, compared to RM4.2493 during the morning session. At the close, the ringgit was traded mostly higher against a basket of major currencies. It strengthened against the British pound to 5.6954/7015 from 5.6999/7060 and advanced versus the euro to 4.9277/9330 from 4.9336/9388 at Friday's close. However, it fell against the Japanese yen to 2.8612/8644 from 2.8517/8549. Meanwhile, the local note rose vis-à-vis the Singapore dollar to 3.2990/3028 from 3.3027/3065, and gained against the Thai baht to 13.0754/0954 from 13.3027/3065. Additionally, the ringgit appreciated against the Indonesian rupiah to 259.2/259.6 from 260.2/260.6 and edged up versus the Philippine peso to 7.40/7.41 from 7.41/7.43 previously. - Bernama
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Business Standard
2 days ago
- Business
- Business Standard
Hallmarking for 9 carat gold gets green light: What it means for consumers
The government has approved hallmarking standards for 9 carat gold, making it officially part of the Bureau of Indian Standards' (BIS) hallmarking system. The notification was issued by the Ministry of Consumer Affairs, and the rule will take effect from this month, June 2025. What's happening: According to BIS, 9K gold must have a minimum fineness of 375 parts per thousand, and will now be subject to the same regulations as other gold categories. Jewellers and hallmarking centres must comply starting July 2025. Why it matters: Gold prices have surged to record highs in India, crossing ₹99,000 per 10 grams and briefly hitting ₹1,00,484 on the MCX. This has led to many consumers being priced out of the market. By making 9 carat gold (which costs roughly ₹38,110 per 10 grams, including GST) part of the hallmarking system, the government aims to: The background: Until now, hallmarking in India was permitted only for 24K, 23K, 22K, 20K, 18K, and 14K gold. The BIS hallmark certifies the gold's purity (measured in parts per thousand) and ensures consumer protection under the BIS Act, 2016. The absence of 9 carat gold from the list had limited jewellers' ability to sell lower-purity, affordable options with government-backed certification. That gap has now been filled. This development comes after a steep 60 per cent drop in gold sales by volume in June, the sharpest decline since the Covid-19 pandemic. Why have gold prices surged? Gold prices are surging due to a combination of global and domestic factors. Investors are turning to gold as a safe-haven asset amid heightened geopolitical tensions, particularly between the US and China, and growing political instability. A significant drop of over 4 per cent in the US Dollar Index this year has further boosted gold's appeal on the global stage. Central banks, especially in Asia, are increasing their gold reserves to diversify away from the US dollar, driven in part by concerns over political risks such as the freezing of Russian central bank assets. Additionally, the US Federal Reserve's interest rate cuts have made gold, which does not yield income, relatively more attractive. In India, domestic demand remains strong due to cultural and seasonal factors—key festivals in India traditionally see a rise in gold purchases, keeping demand high regardless of price trends. Industry speaks: Officials and industry leaders have welcomed the move as overdue and timely. 'We had been urging the government to introduce hallmarking of 9 carat gold for over a year,' said Surendra Mehta, national secretary, India Bullion & Jewellers Association (IBJA), speaking to The Economic Times. 'This will spur demand, especially in rural areas.' Suvankar Sen, MD & CEO of Senco Gold, added, 'It's a great initiative to make gold jewellery more accessible amid high prices. Modern designs come out smartly in 9K gold, and this move also supports innovation and exports.' The bigger picture: India is one of the world's largest consumers of gold, using 800–850 tonnes annually. Global factors, including inflation and geopolitical tensions like the Russia-Ukraine war, have driven up gold prices by over 25 per cent in the past year. Amid this, jewellers are increasingly turning to lower-carat jewellery to reduce production costs and attract budget-sensitive buyers, and hallmarked 9K jewellery could unlock new export opportunities, especially for lightweight, design-centric collections. What to watch out for: The new standard takes effect from July 2025, so not all jewellers may immediately offer hallmark-certified 9K gold. Consumers should look for the BIS hallmark and the fineness mark (375) when buying 9 carat jewellery. Gold watches and pens are now excluded from the BIS artefact definition; consumers should be aware that these items may not be hallmarked even if ma
Economic Times
3 days ago
- Business
- Economic Times
Gold holds firm at Rs 98,160/10 gm as robust US economy dims rate cut hopes. Key support levels to track
Live Events How to trade gold? Gold has support at Rs 97,770-97,440 and resistance at Rs 98,360-98,640 Silver has support at Rs 1,12,200-1,11,400 and resistance at Rs 1,13,650-1,14,500 Gold rates in physical markets: Gold Price today in Delhi Gold Price today in Mumbai Gold Price today in Chennai Gold Price today in Hyderabad (You can now subscribe to our (You can now subscribe to our ETMarkets WhatsApp channel As resilient US economic data dampened hopes of an interest rate cut, gold August futures contracts on MCX opened flat on Monday at Rs 98,160 per 10 grams, near their 1-week high, slightly up by Rs 136 or 0.14%.Meanwhile, silver July futures contracts were also trading flat, slightly higher by Rs 227 or 0.2%, at Rs 1,13,117 per Friday, gold and silver settled on a positive note in both domestic and international markets. The gold August futures contract settled at Rs 98,024 per 10 grams with a gain of 0.57%, while the silver September futures contract settled at Rs 1,12,950 per kg, up 0.55%.Gold and silver traded within a range last week and held their support levels. The dollar index gained for the second straight week after better-than-expected US economic data, limiting gains in precious metals.'A stronger dollar, driven by upbeat US economic data, capped gains in precious metals. Optimism around the US economy reduced expectations of an early Fed rate cut , creating resistance at higher levels. However, trade tariff concerns and continued central bank buying lent support on declines,' noted Rahul Kalantri, VP – Commodities at Mehta and silver also face resistance at higher levels, as strong US economic data dims the chances of early rate cuts by the US Fed. However, they are receiving support at lower levels due to US trade tariff uncertainties and continued global central bank buying.'The ECB monetary policy meetings and US manufacturing data could provide further direction to bullion markets,' said Manoj Kumar Jain of Prithvi Finmart Commodity Research.'We expect gold and silver prices to remain volatile this week amid global financial market fluctuations, Fed uncertainty, and ahead of the ECB's monetary policy meetings. However, gold prices could hold the support level of $3,280 per troy ounce, while silver could hold $36.40 per troy ounce on a weekly closing basis,' he the US Dollar Index (DXY) was hovering near the 98.44 mark, down by 0.04 or 0.04%.Manoj Kumar Jain suggested the following ranges for gold and silver on MCX:Jain suggests buying silver on dips around Rs 1,12,200 with a stop loss of Rs 1,11,450 for a target of Rs 1,13,650-1,14, gold (22 carat) prices in Delhi stand at Rs 57,528/8 grams while pure gold (24 carat) prices stand at Rs 61,320/8 gold (22 carat) prices in Mumbai stand at Rs 58,008/8 grams while pure gold (24 carat) prices stand at Rs 61,864/8 gold (22 carat) prices in Chennai stand at Rs 56,904/8 grams while pure gold (24 carat) prices stand at Rs 60,696/8 gold (22 carat) prices in Hyderabad stand at Rs 56,904/8 grams while pure gold (24 carat) prices stand at Rs 60,640/8 grams.(Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of the Economic Times)
