Latest news with #fiscalOutlook
Reuters
23-05-2025
- Business
- Reuters
Rupee gains along with Asian peers as US fiscal concerns drag dollar
MUMBAI, May 23 (Reuters) - The Indian rupee gained on Friday as the dollar slipped on concerns about the U.S. fiscal outlook, with markets digesting the potential impact of President Donald Trump's tax-cut bill, which is projected to add to the U.S. debt pile. Emerging market currencies rose across the board, with Asian currencies up between 0.1% to 0.7%. The rupee rose 0.2% to 85.83 as of 10:25 a.m. IST on Friday, recovering after slipping past the 86/dollar level for the first time in over a month on Thursday. The South Asian currency has broadly underperformed its emerging market peers so far in May, with traders citing persistent dollar demand from corporate payments and foreign portfolio outflows. Foreign portfolio investors sold Indian shares worth about $586 million on Thursday, as per provisional data, the third such session of selling in four days. Overseas investors were also net sellers of index-linked Indian bonds on Thursday. The rupee was aided by dollar offers from local private and a few foreign banks early on Friday but could face resistance around the 85.75 level while finding support near 86.20, a foreign exchange trader at a mid-sized Mumbai bank said. The dollar index, meanwhile, was down 0.2% at 99.6 while U.S. bond yields edged lower in Asia trading. The 10-year U.S. Treasury yield had climbed to a three-month peak of 4.62% as a worsening fiscal outlook for the United States raised concerns about demand for U.S. government debt. While India's sovereign bonds have witnessed some selling pressure due to the rise in U.S. bond yields, expectations of monetary policy easing have contained the pressure. Announcement of the central bank's dividend transfer to the government will be in focus on Friday. The Reserve Bank of India's earnings for the previous fiscal "are likely to have a received a hand from a significant increase in FX dollar sales to the tune of ~$400 billion, which is more than double of FY24, in addition to higher interest income from government securities," DBS said in a note.
Reuters
23-05-2025
- Business
- Reuters
Gold heads for best week in more than a month on US fiscal worries
May 23 (Reuters) - Gold was set for its best weekly gain in more than a month on Friday, as a softer dollar and mounting concerns about the deteriorating fiscal outlook for the world's biggest economy boosted the metal's safe-haven appeal. Spot gold gained 0.3% to $3,303.92 an ounce as of 0204 GMT. Bullion has risen 3% so far this week and is on track for its best weekly performance since early April. U.S. gold futures added 0.2% to $3,303.00. The dollar (.DXY), opens new tab has lost more than 1% so far this week and is set for its worst weekly performance since April 7, making greenback-priced gold cheaper for holders of other currencies. "This week, trade optimism has somewhat given way to worries about the U.S.'s fiscal situation, and the resulting hesitancy towards U.S. assets has put gold back in the frame with investors," said KCM Trade's Chief Market Analyst, Tim Waterer. "Gold can likely maintain its foothold above the $3,000 level while tariff, U.S. debt and geopolitical (tension) remain swirling around financial markets." The Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill on Thursday, embedding much of President Donald Trump's policy agenda and adding trillions of dollars more to the national debt. What Trump dubbed a "big, beautiful bill", is now headed to the Senate, which Republicans control by a 53-47 margin. On Wednesday, the U.S. Treasury Department saw soft demand for a $16 billion sale of 20-year bonds. Investor sentiment was already fragile after Moody's downgraded the U.S. triple-A credit rating last week. Gold is used as a safe store of value during political and financial uncertainty. Meanwhile, Iran's Foreign Minister Abbas Araqchi warned that the U.S. would bear legal responsibility for any Israeli attack on Iranian nuclear facilities, following a CNN report that Israel is preparing strikes on Iran. Spot silver rose 0.1% to $33.12 an ounce, platinum firmed 0.4% to $1,084.99 and palladium lost 0.1% to $1,013.63.
Yahoo
23-05-2025
- Business
- Yahoo
Gold heads for best week in more than a month on US fiscal worries
By Anushree Mukherjee (Reuters) - Gold was set for its best weekly gain in more than a month on Friday, as a softer dollar and mounting concerns about the deteriorating fiscal outlook for the world's biggest economy boosted the metal's safe-haven appeal. Spot gold gained 0.3% to $3,303.92 an ounce as of 0204 GMT. Bullion has risen 3% so far this week and is on track for its best weekly performance since early April. U.S. gold futures added 0.2% to $3,303.00. The dollar has lost more than 1% so far this week and is set for its worst weekly performance since April 7, making greenback-priced gold cheaper for holders of other currencies. "This week, trade optimism has somewhat given way to worries about the U.S.'s fiscal situation, and the resulting hesitancy towards U.S. assets has put gold back in the frame with investors," said KCM Trade's Chief Market Analyst, Tim Waterer. "Gold can likely maintain its foothold above the $3,000 level while tariff, U.S. debt and geopolitical (tension) remain swirling around financial markets." The Republican-controlled U.S. House of Representatives passed a sweeping tax and spending bill on Thursday, embedding much of President Donald Trump's policy agenda and adding trillions of dollars more to the national debt. What Trump dubbed a "big, beautiful bill", is now headed to the Senate, which Republicans control by a 53-47 margin. On Wednesday, the U.S. Treasury Department saw soft demand for a $16 billion sale of 20-year bonds. Investor sentiment was already fragile after Moody's downgraded the U.S. triple-A credit rating last week. Gold is used as a safe store of value during political and financial uncertainty. Meanwhile, Iran's Foreign Minister Abbas Araqchi warned that the U.S. would bear legal responsibility for any Israeli attack on Iranian nuclear facilities, following a CNN report that Israel is preparing strikes on Iran. Spot silver rose 0.1% to $33.12 an ounce, platinum firmed 0.4% to $1,084.99 and palladium lost 0.1% to $1,013.63. Sign in to access your portfolio
