logo
#

Latest news with #currency

India cenbank net bought $1.76 billion in forex market in May, bulletin shows
India cenbank net bought $1.76 billion in forex market in May, bulletin shows

Yahoo

time2 hours ago

  • Business
  • Yahoo

India cenbank net bought $1.76 billion in forex market in May, bulletin shows

MUMBAI (Reuters) -The Reserve Bank of India (RBI) bought a net of $1.76 billion in the foreign exchange market in May, data released on Wednesday as part of the central bank's monthly bulletin showed. The RBI said it purchased $9.1 billion and sold $7.3 billion during the month. In April, the central bank had sold a net of $1.66 billion. The Indian rupee had declined by over 1% in May, pressured by persistent uncertainty over U.S. trade policies, an armed conflict between India and Pakistan, and likely dollar-buying interventions by the central bank. The RBI's net outstanding forward sale stood at $65.2 billion as of end-April, compared with a net sale of $72.6 billion at the end of the previous month, the data showed. The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The rupee closed little changed at 86.4075 per U.S. dollar on Wednesday. Sign in to access your portfolio

CNBC report says Singdollar may reach safe-haven status, like Swiss franc, yen, and US dollar
CNBC report says Singdollar may reach safe-haven status, like Swiss franc, yen, and US dollar

Independent Singapore

time5 hours ago

  • Business
  • Independent Singapore

CNBC report says Singdollar may reach safe-haven status, like Swiss franc, yen, and US dollar

SINGAPORE: A CNBC report from earlier this week quotes industry experts as saying that the Singapore dollar may become a 'safe haven' currency — an asset that retains its value or even appreciates during times of market turbulence. The Singdollar may end up as 'the next safe haven on a par with the Swiss franc,' the report says, noting that though the US dollar is still the top reserve currency around the globe, the dollar index has decreased by more than 9 per cent this year. Meanwhile, trade concerns cast a shadow over the Japanese yen's outlook. The CNBC report quoted an FX strategist at OCBC, Christopher Wong, as noting that the Singdollar is not considered in the same way as the US dollar, the yen, and the Swiss franc. It 'tends to exhibit defensive characteristics during episodes of financial stress — especially those centred in Asia.' Mr Wong pointed out that Singapore's currency already works as a 'quasi safe-haven' in the region and for emerging markets. The Singapore dollar has gained strength against the US dollar this year, rising around 6 per cent so far. In May, an article in CNA said that the two currencies, then at $1 to S$1.29, could reach parity . Mansoor Mohi-uddin, chief economist at Bank of Singapore, said at the time that parity between the two currencies could be achieved 'in our lifetimes' and cited the example of the Swiss franc, which did so in the wake of the financial crisis of 2008. On July 11, Jefferies Financial said the same. Its group strategist, Christopher Wood, noted that since March 22, when the US Federal Reserve started increasing interest rates, the Singdollar 'has appreciated against almost all major currencies, confirming its status as the 'Swiss franc of Asia.'' 'Wood stated that Singapore's bond yields remain attractive to conservative funds focused on wealth preservation. From a five-year perspective, it is reasonable to expect the exchange rates of the Singapore dollar to reach parity with the US dollar, implying an appreciation of 28 per cent,' Jefferies added. What has contributed to the strength of the Singdollar is the city-state's economics, institutions, and policies regarding fiscal prudence, which are routinely described as solid. Moreover, Singapore has political stability and a deep well of reserves. CNBC quotes VP Bank chief investment officer Felix Brill as saying that Singapore's monetary policy framework has given 'exceptional stability' to the currency, 'which is exactly what safe haven flows seek.' Obstacles to the Singdollar reaching safe haven status, however, remain. The first is the size of the market for the Singapore dollar, compared to the US dollar, the yen, and the Swiss franc. The second is the fact that the city-state's economy is heavily reliant on exports. /TISG Read also: SAFE HAVEN: So much cash has been deposited in Singapore that DBS lent MAS $30 billion

India cenbank net bought $1.76 billion in forex market in May, bulletin shows
India cenbank net bought $1.76 billion in forex market in May, bulletin shows

Reuters

time5 hours ago

  • Business
  • Reuters

India cenbank net bought $1.76 billion in forex market in May, bulletin shows

MUMBAI, July 23 (Reuters) - The Reserve Bank of India (RBI) bought a net of $1.76 billion in the foreign exchange market in May, data released on Wednesday as part of the central bank's monthly bulletin showed. The RBI said it purchased $9.1 billion and sold $7.3 billion during the month. In April, the central bank had sold a net of $1.66 billion. The Indian rupee had declined by over 1% in May, pressured by persistent uncertainty over U.S. trade policies, an armed conflict between India and Pakistan, and likely dollar-buying interventions by the central bank. The RBI's net outstanding forward sale stood at $65.2 billion as of end-April, compared with a net sale of $72.6 billion at the end of the previous month, the data showed. The central bank intervenes in the spot and forwards market to curb exchange rate volatility. The rupee closed little changed at 86.4075 per U.S. dollar on Wednesday.

Muted open for rupee despite Asia cheer on US-Japan trade pact
Muted open for rupee despite Asia cheer on US-Japan trade pact

Reuters

time12 hours ago

  • Business
  • Reuters

Muted open for rupee despite Asia cheer on US-Japan trade pact

MUMBAI, July 23 (Reuters) - The Indian rupee is expected to open largely unchanged on Wednesday, shrugging off the modest boost to its Asian peers after a U.S.-Japan trade deal fuelled hopes that Washington may strike similar agreements with other countries. The 1-month non-deliverable forward indicated the rupee will open in the 86.35-86.38 range versus the U.S. dollar, compared with 86.3675 on Tuesday. The rupee will "receive mild help" at open on account of Asia, a currency trader at a Mumbai-based bank said. "However, dips (on USD/INR) have been bought into quickly and the odds favour a repeat of that," he said, adding, "I will definitely not be looking to sell USD/INR currently." On Tuesday, the rupee briefly recovered to 86.22 before slipping to a one-month low of 86.4125 on likely outflows and hedging. The currency has declined in seven of the last eight sessions, dropping 0.7% so far this month. Shares in Tokyo jumped and U.S. equity futures rose after U.S. President Donald Trump announced a trade deal with Japan, lowering proposed tariffs on Japanese imports to 15% from 25%. The agreement lifted the yen and other Asian currencies. The U.S.-Japan deal comes just days ahead of the August 1 deadline set by Trump for finalising trade agreements or face steep tariffs. The scheduled rollout of the reciprocal tariff on 1 August "looms large", MUFG Bank said in a note. "In the absence of new US trade deals, there's a risk that tariff levels could revert to the steeper rates announced during Liberation Day in April. This uncertainty is weighing on the U.S. dollar." On Tuesday, Trump announced a new 19% tariff on goods from the Philippines, just below the 20% rate he had previously threatened to impose. India, meanwhile, has yet to reach a trade agreement with the United States and the prospects of an interim trade deal before the August 1 deadline have dimmed. KEY INDICATORS: ** One-month non-deliverable rupee forward at 86.40; onshore one-month forward premium at 11.75 paise ** Dollar index at 97.48 ** Brent crude futures up 0.4% to $68.8 per barrel ** Ten-year U.S. note yield at 4.36% ** As per NSDL data, foreign investors sold a net $125.8 million worth of Indian shares on July 21 ** NSDL data shows foreign investors sold a net $8.9 million worth of Indian bonds on July 21

Why Nokia Stock Is Sinking Today
Why Nokia Stock Is Sinking Today

Yahoo

time15 hours ago

  • Business
  • Yahoo

Why Nokia Stock Is Sinking Today

Key Points Nokia has lowered its full-year profit outlook due to currency exchange rates and new tariffs. The U.S. dollar has fallen significantly in relation to the euro in recent months. 10 stocks we like better than Nokia Oyj › Shares of Nokia (NYSE: NOK) are falling on Tuesday, down 5.4% as of 3:40 p.m. ET. The drop comes as the S&P 500 (SNPINDEX: ^GSPC) gained 0.1% and the Nasdaq Composite (NASDAQINDEX: ^IXIC) lost 0.3%. Nokia, the telecom company and once cell-phone giant, announced today that it has revised its guidance ahead of its upcoming earnings release. Nokia's profit warns of currency and tariff impacts The Finnish company announced today that it has revised its comparable operating profit guidance for the full year downward. While it had been projecting profits of between 1.9 billion euros to 2.4 billion euros, it now expects between 1.6 billion euros and 2.1 billion euros. Nokia cited currency fluctuations and a weakening U.S. dollar as the primary reason for its revision. It also cited impacts from President Trump's tariffs and those imposed in response by the E.U. The weakening U.S. dollar is a major concern not just for Nokia, but for companies across the globe who do significant business in the U.S. When Nokia originally set its 2025 guidance, it used an exchange rate of 1.04, which has risen to 1.17, a significant move. The company is struggling The external pressures of currency movements and tariffs are not helping the already struggling company. Nokia's revenues have fallen significantly over the past few years. From 2022 to 2024, its top line declined from $23.8 billion to $19.2 billion. I would avoid this stock at the moment. While it could reverse these trends, it's unlikely to do so in the near future, given macro pressures and the fact the stock could fall significantly. Should you invest $1,000 in Nokia Oyj right now? Before you buy stock in Nokia Oyj, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Nokia Oyj wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $665,092!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,050,477!* Now, it's worth noting Stock Advisor's total average return is 1,055% — a market-crushing outperformance compared to 180% for the S&P 500. Don't miss out on the latest top 10 list, available when you join Stock Advisor. See the 10 stocks » *Stock Advisor returns as of July 21, 2025 Johnny Rice has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Why Nokia Stock Is Sinking Today was originally published by The Motley Fool

DOWNLOAD THE APP

Get Started Now: Download the App

Ready to dive into a world of global content with local flavor? Download Daily8 app today from your preferred app store and start exploring.
app-storeplay-store