Latest news with #forex
Reuters
9 hours ago
- Business
- Reuters
China has conditions to maintain yuan stability, FX regulator says
BEIJING, July 22 (Reuters) - China has the conditions to keep the yuan stable, the country's foreign exchange regulator said on Tuesday, even as trade relations with Washington remain uncertain and deflationary pressures continue to weigh on the domestic economy. Li Bin, the deputy head of the State Administration of Foreign Exchange (SAFE), said that the yuan has been trading at reasonable and balanced levels so far this year and had the conditions to remain stable. "From a policy perspective, China has accumulated rich experiences in counter-cyclical adjustments in the foreign exchange market and has ample reserves of policy tools," Li said. He added that the regulator's ability to "prevent and resolve external shocks and risks" had been enhanced. "We have the confidence and ability to continue to maintain the stable operation of the foreign exchange market," he said. Overseas investors in general have increased their net holdings of onshore equities and bonds in the second quarter of this year, Li told a press conference in Beijing. He added that supply and demand in the foreign exchange market were basically stable. China's yuan has strengthened about 1.7% against the U.S. dollar so far this year. Chinese businesses and investors expect the yuan to remain steady in the near term, a rise in currency swaps and growing foreign exchange deposits suggest they are expecting the yuan to depreciate as U.S. trade tensions drag on. China reported slightly better-than-expected second-quarter gross domestic product (GDP) data last week, though analysts warn that weak demand at home and rising global trade risks will ramp up pressure on Beijing to roll out more stimulus. The 90-day tariff truce agreed by Washington and Beijing during trade talks in Switzerland is due to end on August 12. Official data on Tuesday showed that foreign investors sold China's onshore yuan bonds for the second consecutive month in June.
Reuters
12 hours ago
- Business
- Reuters
Akzo Nobel lowers adjusted earnings forecast citing market uncertainties
July 22 (Reuters) - Dulux paint maker Akzo Nobel ( opens new tab lowered its core profit outlook for 2025 on Tuesday, citing ongoing market uncertainties and adjusting for exchange rates. The Dutch paints and coatings maker now forecasts adjusted earnings before interest, taxes, depreciation and amortisation (EBITDA) of 1.48 billion euros ($1.73 billion) in 2025, down from the above-1.55 billion euros previously forecast. "It's a 70-million-euro forex translation impact linked to where the currencies are today," Poux-Guillaume told Reuters in an interview, referring to the lower forecast. "But it's purely a translation effect. We're naturally hedged because we're very local, so at constant currency the guidance hasn't changed, it's confirmed." AkzoNobel's quarterly adjusted EBITDA dropped 2% to 393 million euros, missing analysts' average estimate of 403 million euros, according to a company-provided consensus. CEO Greg Poux-Guillaume said in a press release that this drop came amid "significant currency headwinds, due to the strength of the euro and generally tepid markets." The euro is up 13% so far this year as investors looked for alternatives to U.S. assets and to lower their dollar exposure in the wake of U.S. President Donald Trump's erratic trade policies. The group reiterated its mid-term guidance of an adjusted EBITDA margin of above 16% and a return on investment between 16% and 19%. ($1 = 0.8554 euros)
Reuters
21 hours ago
- Business
- Reuters
Brazil to investigate suspected FX insider trading on US tariffs
BRASILIA, July 21 (Reuters) - Brazil's Supreme Court Justice Alexandre de Moraes authorized an investigation into the alleged use of privileged information on foreign exchange transactions before the announcement of the 50% U.S. tariff on all Brazilian imports in July, according to a Monday court filing. On Saturday, the solicitor general's office, known as AGU, had requested Supreme Court authorization to look into the trades after a news report suggested a significant volume of Brazilian reals were sold in anticipation of the tariff announcement, which could suggest insider trading. The news report was based on a chart posted by Spencer T. Hakimian, founder at New York-based hedge fund Tolou Capital Management, that showed how the Brazilian real moved on June 9, when Trump announced a 50% tariff on imports from Brazil. He told Reuters on June 10 that he had no further data or information to back his comments. Tolou manages $82 million in a global macro hedge fund strategy. "I am very happy to see Brazil looking into something suspicious. I wish the U.S. would be responsible enough to do the same," Hakimian said, after learning about the probe. The new probe is part of the investigation into the use of international tariffs to coerce Brazil's court system to drop the case against former Brazilian President Jair Bolsonaro for plotting a coup after he lost the 2022 presidential elections. Brazil's attorney general is investigating Eduardo Bolsonaro, the son of the former president, over allegations that he courted interference by Trump. The crisis also prompted Brazil's Supreme Court to issue new restrictive measures against the former president, such as wearing an electronic ankle monitor.
Yahoo
21 hours ago
- Business
- Yahoo
Brazil to investigate suspected FX insider trading on US tariffs
By Lisandra Paraguassu BRASILIA (Reuters) -Brazil's Supreme Court Justice Alexandre de Moraes authorized an investigation into the alleged use of privileged information on foreign exchange transactions before the announcement of the 50% U.S. tariff on all Brazilian imports in July, according to a Monday court filing. On Saturday, the solicitor general's office, known as AGU, had requested Supreme Court authorization to look into the trades after a news report suggested a significant volume of Brazilian reals were sold in anticipation of the tariff announcement, which could suggest insider trading. The news report was based on a chart posted by Spencer T. Hakimian, founder at New York-based hedge fund Tolou Capital Management, that showed how the Brazilian real moved on June 9, when Trump announced a 50% tariff on imports from Brazil. He told Reuters on June 10 that he had no further data or information to back his comments. Tolou manages $82 million in a global macro hedge fund strategy. "I am very happy to see Brazil looking into something suspicious. I wish the U.S. would be responsible enough to do the same," Hakimian said, after learning about the probe. The new probe is part of the investigation into the use of international tariffs to coerce Brazil's court system to drop the case against former Brazilian President Jair Bolsonaro for plotting a coup after he lost the 2022 presidential elections. Brazil's attorney general is investigating Eduardo Bolsonaro, the son of the former president, over allegations that he courted interference by Trump. The crisis also prompted Brazil's Supreme Court to issue new restrictive measures against the former president, such as wearing an electronic ankle monitor. (By Lisandra Paraguassu and Maria Carolina Marcello; additional reporting by Carolina Mandl in New York; writing by Isabel Teles; Editing by Stephen Coates) 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
Times of Oman
2 days ago
- Business
- Times of Oman
India's forex reserves dip $3.06 bn to $696.67bn, second straight weekly decline
Mumbai: India's foreign exchange reserves fell by USD 3.06 billion to USD 696.67 billion for the week ending July 11, marking the second straight week of decline, according to the official data released by the Reserve Bank of India (RBI). In the previous reporting week of July 4, the country's forex reserves witnessed a slip of USD 3.049 billion to USD 699.736 billion. In the week ending July 11, foreign currency assets, which are the major constituent of the forex reserves, fell USD 2.477 billion to USD 588.81 billion, possibly becoming the major reason for the fall in the forex reserves. The Gold reserves, another major component of the forex, again witnessed a sharp fall of USD 498 million to USD 84.348 billion. The country's Special Drawing Rights (SDRs) with the global financial body, the International Monetary Fund (IMF), saw a dip of USD 66 million to USD 18.802 billion during the reporting week of July 11, according to the RBI data. The Reserve Position in the IMF also decreased by USD 24 million, according to the data. Central banks worldwide are increasingly accumulating safe-haven gold in their foreign exchange reserves kitty, and India is no exception. The share of gold maintained by the Reserve Bank of India (RBI) in its foreign exchange reserves has almost doubled since 2021, till recently. In 2023, India added around USD 58 billion to its foreign exchange reserves, contrasting with a cumulative decline of USD 71 billion in 2022. In 2024, the reserves rose by a little over USD 20 billion, touching an all-time high of USD 704.885 billion at the end of September 2024. India's foreign exchange reserves (Forex) are sufficient to meet 11 months of the country's imports and about 96 per cent of external debt, said Governor Sanjay Malhotra while announcing the outcome of the Monetary Policy Committee (MPC) decisions. The RBI governor expressed confidence, stating that India's external sector is resilient and key external sector vulnerability indicators are improving. Foreign exchange reserves, or FX reserves, are assets held by a nation's central bank or monetary authority, primarily in reserve currencies such as the US Dollar, with smaller portions in the Euro, Japanese Yen, and Pound Sterling. The RBI often intervenes by managing liquidity, including selling dollars, to prevent steep Rupee depreciation. The RBI strategically buys dollars when the Rupee is strong and sells when it weakens.
