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HONG KONG, Aug 15 (Reuters Breakingviews) - Hong Kong has lost some permanent appeal. The introduction of two sets of approvals was mandated three decades ago when foreign investors wanted additional protections to invest in the first wave of Chinese firms listing in Hong Kong. China's domestic securities laws have since developed and global investors can now directly buy shares onshore through various channels. That could lead to more onshore shares being issued relative to offshore shares, further diluting minority owners in Hong Kong. In 2020, Hong Kong shareholders vetoed the Bank of Zhengzhou's proposal to avoid such an outcome.

Persons: Hong Kong, HKEX, Una Galani, Thomas Shum Organizations: Reuters, Hong Kong Exchanges, HK, China Securities Regulatory Commission, Asia Securities Industry, Financial Markets Association, Corporate Governance Association, China Life Insurance, Wall, Hong, Bank of, Companies, Global, Hang Seng China Enterprise Index, Graphics Global, Thomson Locations: HONG KONG, Hong Kong, China, Shanghai, Shenzhen, Hong

A general view of the facade of Banco de la Nacion Argentina (Bank of the Argentine Nation), in Buenos Aires, Argentina December 7, 2021. The official FX rate will be fixed at 350 pesos per dollar until the October elections, the central bank said. The country's sovereign dollar bonds fell as much as 2 cents on the dollar, with the 2038 note leading the slide, according to MarketAxess data. Latin America's third-largest economy has been grappling with a severe economic crisis with sky-high inflation and falling central bank reserves. A candidate needs 45% of the Oct. 22 vote to win outright or 40% and a 10-point lead over second place.

Persons: Agustin Marcarian, Javier Milei, William Jackson, overvalued, Sunday's, Goldman Sachs, Patricia Bullrich, Sergio Massa, Ricardo Delgado, Eliana Raszewski, Rodrigo Campos, Jorge Otaola, Medha Singh, Adam Jourdan, Bernadette Baum, John Stonestreet, Andrew Cawthorne Organizations: de la Nacion Argentina, Bank of, Argentine, REUTERS, LONDON, Capital Economics, Investment, JPMorgan, Gross, Milei, Peronist, Economy, Analytica, Reuters Graphics Reuters, International Monetary Fund, IMF, Qatar, Thomson Locations: Buenos Aires, Argentina, Agustin Marcarian BUENOS AIRES, MERV, Argentine, refinance, Washington, Rosario

☆ Indian shares set to open lower; domestic inflation data in focus
▼ + stars: | 2023-08-14 | by ( Manvi Pant | ) www.reuters.com time to read: +2 min

A security guard walks past the logo of the National Stock Exchange (NSE) inside its building in Mumbai, India, May 28, 2019. REUTERS/Francis Mascarenhas/File PhotoBENGALURU, Aug 14 (Reuters) - Indian shares on Monday are expected to start on a slightly weaker note in the holiday-truncated week as earnings season draws to a close, ahead of domestic retail inflation data due later in the day. India's GIFT Nifty on the NSE International Exchange was down 0.28% at 19,432 at 7.58 a.m. IST. Foreign investors sold shares worth 30.73 billion Indian rupees ($370.80 million) on Friday, according to provisional data from the National Stock Exchange (NSE). ($1 = 82.8740 Indian rupees)Reporting by Manvi Pant in Bengaluru; editing by Eileen SorengOur Standards: The Thomson Reuters Trust Principles.

Persons: Francis Mascarenhas, Manvi, Eileen Soreng Organizations: National Stock Exchange, REUTERS, NSE, Reserve Bank of India's, ITC, Vodafone, BSE, Associates, Deloitte, Natural Gas Corporation, Jindal Steel, Thomson Locations: Mumbai, India, BENGALURU, China, Beijing, Manvi Pant, Bengaluru

Moscow's actions have deprived many foreign investors of the ability to trade in Russian securities, including depositary receipts. Investors are worried about future copycat actions by other governments who might look to reduce foreign influence over their leading companies. Depositary receipts, or DRs, are certificates issued by a bank representing shares in a foreign company traded on a local stock exchange. But events in Russia have forced many investors to write down the value of depositary receipts of Russian companies to zero, given their inability to trade them. CONSEQUENCESLoss of confidence in DRs could drain needed foreign capital from firms in emerging economies, for instance.

Persons: Dado Ruvic, Peter C, Earle, Christopher Day, Michael Ashley Schulman, Goldman Sachs, III, Detsky Mir, Goldman, Otkrytie, Schulman, Grzegorz Drozdz, Malcolm Dorson, Sinead Cruise, Carolina Mandl, David Gregorio Our Organizations: REUTERS, Global, American Institute for Economic Research, Reuters, Citigroup, Companies, Citi ., Reuters Graphics, DR, Investors, Doliver Advisors, Running, Capital Advisors, Conotoxia, Russian, Thomson Locations: Moscow, Ukraine, Brazil, China, Russia, GDR, GDRs, United States, Britain, London, Carolina, New York

REUTERS/Thomas Peter/File photoBEIJING, Aug 13 (Reuters) - China's State Council issued guidelines on Sunday that it said would further optimize the country's foreign investment environment and attract more foreign investment. The State Council said in a document containing 24 guidelines that authorities should increase protection of the rights and interests of foreign investors, including strengthening enforcement of intellectual property rights. The document also announced guidelines to increase fiscal support and tax incentives for foreign-invested enterprises, such as temporarily exempting withholding income tax for foreign investors' reinvestment of their profits into China. The State Council said it would explore a "convenient and secure management mechanism" for cross-border data flows. Reporting by Andrew Hayley and Ethan Wang; Editing by Andrew Heavens and Bernadette BaumOur Standards: The Thomson Reuters Trust Principles.

Persons: Thomas Peter, Andrew Hayley, Ethan Wang, Andrew Heavens, Bernadette Baum Organizations: National People's Congress, REUTERS, State, The State Council, Thomson Locations: Beijing, China, BEIJING

☆ Rupee to fall on bets Fed to remain restrictive despite moderating inflation
▼ + stars: | 2023-08-11 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Aug 11 (Reuters) - The Indian rupee will likely weaken on Friday on expectations that the U.S. Federal Reserve will keep interest rates high despite signs that price pressures are moderating. U.S. equities rallied, the dollar index dropped and U.S. yields declined after data showed that headline and core inflation rose less than expected. San Francisco Fed President Mary Daly said that while recent inflation data is moving in the right direction, more progress is needed before she would feel comfortable that the Fed has done enough. The dollar index , which dropped to 101.76 post the inflation data, was back near 102.50. Investors are cautious that while the Fed will pause in September, rates "will remain restrictive for some time", ANZ said in note.

Persons: it's, Mary Daly, Nimesh Vora, Sonia Cheema Organizations: U.S . Federal Reserve, U.S ., NDF, San Francisco Fed, ANZ, Brent, Thomson Locations: MUMBAI, Mumbai, U.S, San

Key hurdles for the two projects include the country's caps on domestic gas prices, limits on gas exports and the high costs for carbon capture and storage - required for new gas projects to help fight global warming. Last month, Shell (SHEL.L) said it would sell its holding in the Masela project to Indonesia's Pertamina and Malaysia's Petronas, while Chevron (CVX.N) agreed to sell its stake in the IDD project to Italy's Eni (ENI.MI). Reuters GraphicsNEW TERMS NEEDEDOnce one of the world's top five liquefied natural gas (LNG) exporters, Indonesia's LNG exports have halved in the past decade, Kpler data showed. The country has not approved a major oil or gas project since 2016 - the expansion of BP's (BP.L) Tangguh LNG plant. The current formula for splitting revenue between the government and investors in gas projects sets the base rate at 48% for companies.

Persons: magnifier, Dado Ruvic, Benny Lubiantara, Andrew Harwood, Wood Mackenzie, SKK Migas, Benny, Prateek Pandey, Takayuki Ueda, Naing, Inpex's Ueda, Fransiska Nangoy, Bernadette Christina Munthe, Emily Chow, Yuka Obayashi, Florence Tan, Sonali Paul Organizations: REUTERS, Indonesia, Shell, Chevron, Indonesia Deepwater Development, Petronas, Eni, Essential Services, Reuters, Indonesia Petroleum Association, Rystad Energy, BMI Research, Fitch Group, Tcf, Thomson Locations: Indonesia, JAKARTA, Jakarta, Chevron, Tokyo, Masela, Singapore

Germany's property sector is in stress, underscoring a major change of fortune for real estate in Europe's largest economy after an end to the era of cheap money. In the latest signs of stress in the sector, Germany's largest real estate group Vonovia (VNAn.DE) posted multi-billion euro losses and writedowns, and job growth for construction workers has stagnated. The property sector makes up roughly a fifth of economic output and one in ten jobs, according to the German Property Federation. The Ukraine war has also made German property seem riskier for foreign investors. The president of the German Property Federation, Andreas Mattner, is pressing the government to temporarily suspend a property sales tax and is demanding a low-interest rate credit program to support new residential building.

Persons: Kai Pfaffenbach, Sven Carstensen, Florian Schwalm, Olaf Scholz, Klara Geywitz, Andreas Mattner, Oliver Mueller, Matthias Inverardi, Holger Hansen, Friederike Heine Our Organizations: REUTERS, CARE, German Property Federation, Reuters Graphics Reuters, European Central Bank, Germany, German Construction Industry Federation, Thomson Locations: Frankfurt, Germany, Germany's, Europe's, Kai Pfaffenbach FRANKFURT, United States, Sweden, Ukraine, East, Asia

☆ Rupee to weaken on dollar rally, RBI likely to intervene
▼ + stars: | 2023-08-08 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Aug 8 (Reuters) - The Indian rupee is expected to open lower on Tuesday, weighed down by the recovery in the dollar index and a decline in Asian peers. Non-deliverable forwards indicate rupee will open at around 82.85 to the U.S. dollar, down from 82.7425 on Monday. The dollar index rose in Asia, and has now recovered a large part of its losses suffered post the U.S. jobs data. Asian currencies were down between 0.2% and 0.6%, with the offshore Chinese yuan slipping to 7.2250 to the dollar. The U.S. inflation data due Thursday is seen key to the Fed's outlook.

Persons: Michelle Bowman, Nimesh Vora, Rashmi Organizations: U.S ., Reserve Bank of India, U.S, U.S . Federal, Reuters, ANZ, Brent, Thomson Locations: MUMBAI, Asia, U.S ., U.S

☆ Rupee to recover on pullback in US yields after jobs data
▼ + stars: | 2023-08-07 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Aug 7 (Reuters) - The Indian rupee is expected to recover on Monday on the back of a pullback in U.S. yields and the decline in the dollar after the U.S. economy added fewer jobs than was forecast. We now move on to the U.S. inflation data and the RBI (Reserve Bank of India)." The 2-year U.S. yield declined while the already low odds of Federal Reserve rate hike in September dropped further. The unemployment rate dropped and wage growth surprised on the upside, suggesting that the U.S. labour market remained resilient. Meanwhile, U.S. consumer inflation data and the RBI policy decision are due Thursday.

Persons: payrolls, Nimesh Vora, Dhanya Ann Thoppil Organizations: U.S ., Reserve Bank of India, Federal, Federal Reserve, ING Bank, Brent, Thomson Locations: MUMBAI, U.S

☆ Rupee likely to remain under pressure on rising US yields
▼ + stars: | 2023-08-04 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

FILE PHOTO-A customer hands Indian currency notes to an attendant at a fuel station in Mumbai, India, August 13, 2018. REUTERS/Francis Mascarenhas/File PhotoMUMBAI, Aug 4 (Reuters) - The Indian rupee is expected to remain under pressure on Friday after longer maturity U.S. yields reached the highest level this year. Non-deliverable forwards indicate the rupee will open slightly weaker to the U.S. dollar from 82.7225 in the previous session. "The rupee and the whole EM complex will not see any sort of relief if the volatility in U.S. yields remains high." The Fitch downgrade of the U.S. credit rating, broadly resilient U.S. data and rising U.S. inflation expectations have contributed to the selloff in Treasuries.

Persons: Francis Mascarenhas, Fitch, Nimesh Vora, Sonia Cheema Organizations: REUTERS, U.S, Reserve Bank of India, U.S ., Reuters, NFP, DBS Research, Brent, Thomson Locations: Mumbai, India, MUMBAI, Treasuries, U.S

☆ UK net-zero ‘pragmatism’ is an odd way to get real
▼ + stars: | 2023-08-04 | by ( George Hay | ) www.reuters.com time to read: +7 min

Yet official UK figures do not suggest the way to get real on climate change is to go any slower. Sunak himself has defended Britain’s record on climate and says he cares about reaching its 2050 net-zero target. As such the net cost of net zero may be more like 344 billion pounds over three decades, or perhaps only 0.4% of GDP per year. Policy certainty will meanwhile encourage foreign investors to help pay for Britain’s transition, reducing its exposure to gas price shocks. UK energy secretary Grant Shapps said on Aug. 2 that the government remained “absolutely committed” to hitting its net-zero carbon targets by 2050.

Persons: Rishi Sunak, Sunak, dawdling, Andrew Forrest, ”, ” Sunak, Michael Gove, Grant Shapps, “, Neil Unmack, Streisand Neto, Oliver Taslic Organizations: Reuters, Sunak’s Conservative Party, Budget, Reuters Graphics Reuters, ’, McKinsey reckons, Britain, Conservatives, Thomson Locations: Britain, London, China, United States, North

HONG KONG, Aug 3 (Reuters Breakingviews) - South Korea’s dealmaking skeletons are back to haunt. Paul Singer's Elliott opposed a $9 billion union eight years ago of Samsung C&T (028260.KS) and Chiel Industries. South Korea’s successful prosecution of Lee, Park and a former minister that oversaw NPS, provided cause for Elliott to demand payback. Elliott sued in 2018 and the Permanent Court of Arbitration in the Hague in June awarded the U.S. fund over $100 million. Far from being the end of it though, President Yoon Suk Yeol’s government is contesting that award in a British arbitration court.

Persons: Samsung's Lee, Paul Singer's Elliott, Elliott, Jay Y, Lee, Park Geun, Yoon Suk, Hague, Yoon, Taiwan's TSMC, Una Galani, Thomas Shum Organizations: Reuters, Korea Inc, Samsung, Chiel Industries, National Pension Service, NPS, U.S ., Korea, Trade, Global, Samsung Electronics, Apple, Tokyo, Korea's Ministry, Justice, Elliott Investment, Thomson Locations: HONG KONG, U.S, Hague, Seoul, Korea, China, Beijing, Washington, Taiwan, Japan, South Korea, United States

☆ GSK Nigeria calls an end to its business, to return cash
▼ + stars: | 2023-08-03 | by ( Chijioke Ohuocha | ) www.reuters.com time to read: +2 min

ABUJA, Aug 3 (Reuters) - GlaxoSmithKline (GSK) Nigeria (GLAXOSM.LG) said on Thursday it plans to stop doing business after evaluating the options for moving to a third-party distribution model for its drugs and consumer healthcare goods. GSK Nigeria, which has faced increased competition from local companies and imports from India and China, said its half-year sales had dropped to 7.75 billion naira ($9.82 million), from 14.8 billion naira in the same period a year ago. GSK Nigeria said it is working with advisers to agree next steps and plans to submit a scheme of arrangement to Nigeria's Securities and Exchange Commission, which if approved will see it return cash to shareholders except its parent GSK. "For the above reasons, and having, together with GSK UK, evaluated various other options, the Board of GlaxoSmithKline Consumer Nigeria Plc has concluded that there is no alternative but to cease operations," GSK Nigeria said in a statement. Shares in GSK Nigeria, in which British drugmaker GSK has a 46.4% stake and Nigerian shareholders the remaining 53.6%, closed at 8.10 naira, down from a peak of 42.24 naira in 2014.

Persons: Bola Tinubu, Tinubu, Chijioke Ohuocha, Alexander Smith Organizations: GlaxoSmithKline, GSK, Nigeria's Securities, Exchange Commission, Haleon, GlaxoSmithKline Consumer Nigeria Plc, British, Thomson Locations: ABUJA, Nigeria, GSK Nigeria, India, China, British, Africa

☆ US risks 'funding our own destruction' if investor capital flows to Chinese defense firms, key lawmaker says
▼ + stars: | 2023-08-03 | by ( Filip De Mott | ) www.businessinsider.com time to read: +3 min

Forthcoming restrictions should cover US participation in Chinese public markets, he said. "If American capital continues to flow to Chinese military companies, we are at risk of funding our own destruction." A "sizable portion" of that money goes directly to tech companies with ties to China's military and the Chinese Communist Party, he added. His comments follow earlier US efforts to curb Chinese access to critical technologies, such as semiconductors, quantum computing, and artificial intelligence. Meanwhile, foreign investors have been souring on China in recent months as the country's post-COVID economic rebound has disappointed.

Persons: Mike Gallagher, Biden, —, Gallagher, BlackRock Organizations: Service, Financial Times, White, Chinese Communist Party, Communist, Government, Wall Street, BlackRock Locations: China, Wall, Silicon, Wisconsin, MSCI

☆ Asian markets tumble as Fitch downgrades US debt rating
▼ + stars: | 2023-08-02 | by ( Laura He | ) edition.cnn.com time to read: +2 min

Asian markets may “tread cautiously” as investors turn wary of foreign holders selling their US Treasuries, said Stephen Innes, managing partner of SPI Asset Management. Just hours before, Fitch Ratings had cut the credit rating of US debt from the top AAA level to AA+. Together they own $2 trillion, which is more than a quarter of the $7.6 trillion in US Treasury securities held by foreign countries. Nonetheless, Goldman Sachs analysts said on Wednesday that they don’t believe there are any meaningful holders of Treasury securities who will be forced to sell due to a downgrade. “Because Treasury securities are such an important asset class, most investment mandates and regulatory regimes refer to them specifically, rather than AAA-rated government debt,” the Goldman Sachs analysts said.

Persons: Fitch, “, Australia’s, Stephen Innes, Goldman Sachs, ” Organizations: Hong Kong CNN, Nikkei, . Tech, China’s, Fitch, AAA, AA, Treasury Locations: Hong Kong, China’s Shanghai, United States, China, Japan

☆ An outdoor balcony in London is on the market for $63,700, but the listing agent says it doesn't come with an apartment
▼ + stars: | 2023-08-01 | by ( Mikhaila Friel | ) www.businessinsider.com time to read: +4 min

A lone balcony in South Kensington, London, is on the market for $63,700. The listing agent told Insider that the property is a reflection of London's housing market. But an apartment isn't included in that price, the property's listing agent told Insider. Jacobs told Insider that the agency has received around 220 inquiries about the balcony since it was put on the market three weeks ago. Meanwhile, the average London property increased by 0.8% from £521,561, or around $664,990, in May 2022 to £525,629, or around $670,176, in May 2023, the report added.

Persons: Glenn Jacobs, Jacobs, It's, Prince William, Kate Middleton's, Peter Dazeley, Robert Gardner Organizations: Service, Next, Evening, Google, Nationwide Building Society, Government Locations: South Kensington, London, Wall, Silicon, Stanhope, Next Lome, Harrods, Kensington

☆ Rupee may struggle on dollar move, support seen near
▼ + stars: | 2023-08-01 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, Aug 1 (Reuters) - The Indian rupee is likely to decline on Tuesday, pressured by the dollar's move higher versus its major peers and Asian currencies. Non-deliverable forwards indicate rupee will open slightly weaker to U.S. dollar from 82.2450 in the previous session. The dollar index rose above 102 in the Asia session, hovering near the highest in three weeks. Weakness on the Japanese yen contributed to dollar index reaching 102. Surging crude oil prices and the move higher on the dollar index to boost USD/INR, Kunal Sodhani, vice president at Shinhan Bank, said.

Persons: Kunal Sodhani, Nimesh Vora, Nivedita Organizations: U.S, Korean, U.S . Federal Reserve, Brent, Shinhan Bank, Thomson Locations: MUMBAI, Asia, China

☆ Factbox: China's measures to slow yuan depreciation
▼ + stars: | 2023-08-01 | by ( ) www.reuters.com time to read: +4 min

Coins and banknotes of China's yuan are seen in this illustration picture taken February 24, 2022. The informal instruction, or the so-called window guidance, was meant to slow the pace of yuan depreciation, the sources said. China's yuan has lost 3.6% against the dollar to 7.16 per dollar, becoming one of the worst performing Asian currencies. ** July 20, 2023China's major state-owned banks were seen selling dollars to buy yuan in the offshore spot market in early Asian trades, sources with direct knowledge of the matter said. ** June 29, 2023China's major state-owned banks were seen selling dollars for yuan in the onshore spot foreign exchange market, sources with knowledge of the matter said.

Persons: Florence Lo, Winni Zhou, Vidya Ranganathan, Susan Fenton Organizations: REUTERS, People's Bank of China, prudential, Reuters, Thomson Locations: China

☆ Exclusive: China asks some banks to reduce or delay dollar buying -sources
▼ + stars: | 2023-08-01 | by ( ) www.reuters.com time to read: +5 min

One source said regulators were emphatic banks should hold off dollar purchases under their proprietary trading accounts due to the "recent yuan depreciation". "The yuan exchange rate expectations are stable, and the foreign exchange market has the foundation to meet authentic and compliant FX needs," SAFE said in response to a Reuters query. Keeping non-urgent dollar demand at bay could relieve some of the immediate pressure on the yuan, the sources said. But that excitement soon faded, as domestic and foreign investors said they would wait for substantive action before putting more money into China. There was also a seasonal factor too, as overseas-listed Chinese companies usually need more foreign exchange in the summer to pay dividends to shareholders.

Persons: China's, Ken Cheung, Alvin Tan, Tan, Goldman Sachs, Vidya Ranganathan, Simon Cameron, Moore Organizations: U.S ., People's Bank of China, State Administration of Foreign Exchange, Reuters, Mizuho Bank, Asia FX, RBC Capital Markets, Goldman, Overseas, Thomson Locations: SHANGHAI, BEIJING, Hong Kong, Asia, China, Shanghai, Beijing

☆ Rupee hopeful of recovery on back of uptick on Asia FX
▼ + stars: | 2023-07-31 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, July 31 (Reuters) - The Indian rupee will be looking to recover on Monday, tracking the move higher in Asian peers on better-than-expected China data. Non-deliverable forwards indicate the rupee will inch up to the U.S. dollar at open from 82.2475 in the previous session. With Asian currencies doing well to begin the week and risk holding up, the rupee "will be hoping for a mini recovery", a forex trader at a bank said. The data comes after Federal Reserve Chair Jerome Powell left the door open for a rate hike at the September meeting. Data out on Friday supported investor expectations that the Fed rate hike cycle is over.

Persons: Kunal Kurani, Jerome Powell, Nimesh Vora, Sonia Cheema Organizations: U.S, Mecklai, China PMI, People's Bank of, Reuters, Brent, Thomson Locations: MUMBAI, China, U.S, People's Bank of China

HONG KONG/NEW YORK, July 31 (Reuters) - For all the excitement whipped up in China's markets by the Politburo last week, foreign investors say policymakers' words will have to be matched by substantive action to clean up an ailing property sector before confidence recovers. "The question is what resources they will deploy, because China is still very focused on de-leveraging and preventing financial risks." Absolutely, and urgently," said Qi Wang, the chief investment officer (CIO) of MegaTrust Investment (HK), a boutique China fund manager specializing in domestic Chinese A-shares. Mark Dong, general manager of Minority Asset Management, based in Hong Kong, has reduced his exposure to the property sector. The safest bets in the sector, he said, had come down to state-owned companies such as China Resources Land (1109.HK) and Poly Property (0119.HK).

Persons: Tara Hariharan, Qi Wang, Wang, Mark Dong, Bo Zhuang, Loomis, Weng, Rob Hinchliffe, Hinchliffe, Mei Leong, Xie Yu, Georgina Lee, Shen Yiming, Jason Xue, Ankur Banerjee, Tom Westbrook, Vidya Ranganathan, Simon Cameron, Moore Organizations: HONG KONG, MegaTrust Investment, Asset Management, Loomis Sayles Investments, Eastspring Investments, PineBridge Investments, China Evergrande Group, HK, China Resources, Poly Property, Thomson Locations: HONG, China, Hong Kong, Loomis Sayles Investments Asia, Shanghai, New York, Singapore

☆ The Fed's newfound focus on data is bad news for the sliding dollar
▼ + stars: | 2023-07-29 | by ( George Glover | ) www.businessinsider.com time to read: +2 min

Its losing streak could carry on with the Fed taking a "data-dependent approach" to interest rates. Chair Jerome Powell said the central bank would start taking a "data-dependent approach" to rate hikes, with inflation cooling rapidly and the jobs market holding firm. When interest rates stop rising, the dollar becomes less attractive to foreign investors seeking higher yields, meaning the currency is likely to weaken against its rivals. The key number for currency traders to watch going forward will now be the monthly inflationary print, analysts said. If that cooling carries on, the dollar will likely keep sliding – but any flare-up could encourage the Fed to bring in further rate hikes, which could offer some support to the currency.

Persons: that's, Jerome Powell, John Hardy Organizations: Fed, Service, greenback, Federal Locations: Wall, Silicon

☆ Rupee to weaken after dollar jumps on upbeat US data, dovish ECB
▼ + stars: | 2023-07-28 | by ( Nimesh Vora | ) www.reuters.com time to read: +2 min

MUMBAI, July 28 (Reuters) - The Indian rupee is poised to decline on Friday after a better-than-expected reading on U.S. gross domestic product and a slump in the euro prompted the biggest rally on the dollar index in more than four months. Non-deliverable forwards indicate rupee will open at around 82.25 to the U.S. dollar compared with 81.93 on Thursday. Asian currencies were lower, pressured by the biggest advance dollar index since mid-March. The dollar index climbed 0.6% on Thursday, helped the euro's plunge following the European Central Bank outcome. The ECB raised rates by 25 basis points, along expected lines, while leaving its options open for the September meeting.

Persons: Christine Lagarde, Nimesh Vora, Nivedita Organizations: U.S, European Central Bank, ECB, ING Bank, Reuters, U.S . Federal Reserve, Bank of Japan, Brent, Thomson Locations: MUMBAI, Mumbai

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