2025-08-04 10:59
Aug 4 (Reuters) - Ukraine's general staff on Monday confirmed it had carried out a drone attack on a fuel depot of Sochi airport in southern Russia on Sunday. Russian local authorities had blamed Ukraine on Sunday and said two oil tanks had been set ablaze, but there had been no immediate comment from Kyiv. Sign up here. The general staff said on Telegram the airfield hosted military jets. https://www.reuters.com/world/europe/ukraine-claims-sundays-drone-attack-russian-fuel-depot-sochi-2025-08-04/
2025-08-04 10:30
MUMBAI, Aug 4 (Reuters) - The Indian rupee extended its decline against the U.S. dollar on Monday, pressured by persistent foreign outflows and sustained dollar demand from importers, particularly state-run oil companies, traders and analysts said. The rupee closed at 87.6550 to the dollar, compared with Friday's close of 87.5400. Sign up here. The currency had opened stronger at 87.2250, tracking a weaker dollar after a softer-than-expected U.S. jobs report on Friday raised expectations of a Federal Reserve rate cut in September. The dollar index was down 0.27% at 98.92 as of 1025 GMT. However, dollar-buying through the day, especially by oil importers, erased early gains, traders said. The rupee had dropped to 87.74 last Thursday, its lowest since February and just shy of its record low of 87.95, following former U.S. President Donald Trump’s announcement of a steeper-than-expected 25% tariff on Indian imports. The Reserve Bank of India intervened through the week to support the currency, traders said. "Consistent foreign outflows from local stocks and elevated corporate dollar demand are likely to keep the rupee under pressure," a trader at a private bank said. Foreign investors sold $2 billion worth of Indian equities on a net basis in July. Despite intraday volatility, the rupee may stabilise in the coming days, said Dilip Parmar, foreign exchange analyst at HDFC Securities. The RBI's rate decision at its monetary policy meeting later this week could also influence the local currency's trajectory, Parmar added. Meanwhile, other Asian currencies gained on Monday, led by the Malaysian ringgit's rebound of nearly 1% as dollar weakness offered relief from recent losses. https://www.reuters.com/world/india/rupee-extends-slide-foreign-outflows-dollar-demand-oil-firms-2025-08-04/
2025-08-04 10:04
LONDON, Aug 4 (Reuters) - The British pound climbed against the dollar on Monday, adding to gains from Friday as the U.S. currency dropped following a weak U.S. jobs report, with the focus on the Bank of England's impending policy announcement later this week. The pound was last at $1.3306 against the dollar , up 0.2% after a 0.6% gain on Friday. Sign up here. But the currency slid 3.8% last month, its biggest monthly drop since September 2022, on concerns over Britain's fiscal position and softening economic data. "Narratives are often hard to shake and the mood music around GBP has been glum for some time," said Kamal Sharma, senior FX strategist at Bank of America. The pound was last up 0.3% at 87 pence per euro. It fell to 87.69 pence last week, its weakest against the single currency since May 2023. Sharma believes the pound will strengthen into year-end against the euro as he expects euro area data to soften, prompting more rate cuts from the European Central Bank. Danske Bank FX strategist Mohamad Al-Saraf held a more bearish view on the pound, expecting the currency to fall to 89 pence per euro in 12 months. "We think the British economy has shown more pronounced signs of weakness, particularly the labour market," Al-Saraf said. "The relative growth outlook between the UK and the euro area are becoming pound negative." Attention was turning to the BoE policy announcement on Thursday, with markets pricing in around a 90% chance of a quarter-point rate cut. Traders are pricing in 50 basis points of easing by year-end. With a rate cut almost fully priced, focus for currency traders will be on the outlook for interest rates and whether the central bank could slow the pace at which it shrinks its holdings of government bonds, known as quantitative tightening. "There could be a positive surprise for sterling were the BoE to announce that a lower pace of quantitative tightening ... was accompanied by fewer sales of longer-dated Gilts," said ING head of research Chris Turner. https://www.reuters.com/world/uk/sterling-advances-against-dollar-euro-ahead-boe-policy-announcement-2025-08-04/
2025-08-04 08:47
S.Korea scrambled for deal after Japan-U.S. pact, adviser says Seoul, U.S. differ on distribution of profit from investments South Korea calls U.S. claims on trade deal 'political rhetoric' Seoul denies plan to open up rice market Summit to take up defence costs, investments left out of deal SEOUL, Aug 4 (Reuters) - As South Korea and the United States prepare for a summit of their leaders, topics left unresolved by a recent trade deal provide scope for more disputes between the key allies and trade partners, six former negotiators and experts said. President Donald Trump may use the summit with counterpart Lee Jae Myung to seek more concessions on defence costs and corporate investments, left out of the deal, while non-tariff barriers and currency could prove thorny issues, experts said. Sign up here. No official summit date has been disclosed, though Trump last week gave a timeframe of two weeks. The absence of a written agreement underpinning last week's talks could open the way for disputes, with some differences already emerging in the two sides' accounts of the deal. Key among these was Sunday's denial by a South Korean presidential adviser of U.S. claims that it would take 90% of the profit from project investments of $350 billion by South Korea, which also agreed to open up its domestic rice market. "Even a binding deal like the FTA has been efficiently scrapped," warned Choi Seok-young, a former chief negotiator for the Korea-U.S. free trade deal, signed in 2007. "And this is just promise." Last week's pact was scaled down from South Korea's previous plans for a package deal on trade, security and investment envisioned in the run-up to the summit between Trump and the newly-elected Lee. But Japan struck a deal with the United States sooner than expected, spurring South Korea into a scramble for a trade-focused pact, leaving issues of security and investment for the coming summit, presidential adviser Kim Yong-beom said. Uncertainty clouds plans for $350 billion in funds Trump has said South Korea would invest in the United States in projects "owned and controlled by the United States" and selected by him, though he gave few details of the plan's structure or timing. The allies face challenges in ironing out details of the fund at upcoming working-level talks, South Korean Finance Minister Koo Yun-cheol told reporters on Friday. "People say the devil is in the details," he added. In a social media post, Commerce Secretary Howard Lutnick gave an assurance of "90% of the profits going to the American people", while White House spokesperson Karoline Leavitt said part would go to the U.S. government to help repay debt. But Kim, the presidential adviser, said the two sides did not discuss profit distribution during talks, and South Korea expected the profit to be "reinvested" in the United States. 'POLITICAL RHETORIC' The idea of the United States potentially taking most of the profit is "hard to understand in a civilised country", he added, while dismissing as "political rhetoric" Washington's claim that it would make all decisions about the fund. South Korea had added a safety mechanism to reduce financing risk, including U.S. commitments to buy products from the projects, under an "offtake" clause and invest in commercially feasible projects, he said. Seoul officials have said $150 billion would go to the shipbuilding industry, with the rest earmarked for areas such as chips, batteries, critical minerals, biotechnology, nuclear power and other strategic industries. The specifics of the structure have not been determined, said Kim, adding that loans and guarantees make up a majority of the funds, with equity investments accounting for a small part. Leavitt said South Korea would provide "historic market access to American goods like autos and rice," echoing earlier comments by Trump. But South Korea said repeatedly there had been no agreement on the agriculture market, including beef and rice, despite strong pressure from Washington. Trump expressed keen interest in Korea's quarantine process for fruits and vegetables, Seoul said, improvements to which will figure in planned technical talks on non-tariff barriers that will also cover vehicle safety rules, but gave no details. Other non-tariff barriers such as regulation of Big Tech could be hurdles. "We cannot be relieved because we do not know when we will face pressure from tariffs or non-tariff measures again," Trade Minister Yeo Han-koo said last week on returning from Washington. Defence costs are expected to emerge as a key issue during the upcoming summit, with Trump having long said South Korea needed to pay more for the U.S. troop presence there. In addition to the $350 billion, Trump said South Korea agreed to invest a large sum , opens new tab of money in the United States, to be announced during the summit, which he said on July 30 would be held within two weeks. The allies are holding working level-talks on currency policy, put on the agenda at April's opening round of trade talks. https://www.reuters.com/business/autos-transportation/korea-us-prepare-summit-with-details-trade-deal-unresolved-2025-08-04/
2025-08-04 07:55
MUMBAI, August 4 (Reuters) - The Indian rupee slipped after its attempts at a recovery on the back of a weaker dollar fizzled out amid outflows and sustained dollar demand from oil companies, traders said. The rupee opened higher, tracking the dollar’s broad retreat following a weaker-than-expected U.S. jobs report that raised expectations of a September rate cut by the Federal Reserve. However, dollar buying from importers, particularly state-run oil companies, caused the local currency to drop. Sign up here. The rupee was at 87.6050 at 13:12 IST, to the U.S. dollar, off the day’s high of 87.2250 and down from Friday’s level of 87.5400. "There has been importer buying through the session, outflows are adding to the pressure," a trader at a private sector bank said. "Despite the soft dollar, the demand on (USD/INR) dips is intact." Traders said the rupee's moves on Monday reflect India-specific demand for dollars and an overall weaker trend. The rupee had climbed to near 87.20 in opening trades amid the market pricing in a roughly 80% chance of a Federal Reserve rate cut in September meeting following the jobs report. Further, MUFG Bank pointed out in a note that market pricing for Fed rate cuts has increased to 64 basis points for the remainder of the year, up from 33 prior to the payrolls release. U.S. bond yields pushed lower on Friday. On back of the drop in U.S. yields and Fed rate cut expectations, USD/INR forward premiums climbed. The implied yields on the 1-year forward premium rose 9 basis points to 2.05%. https://www.reuters.com/world/india/rupee-slips-after-recovery-fizzles-out-outflows-oil-dollar-bids-forward-premiums-2025-08-04/
2025-08-04 07:37
TOKYO, Aug 4 (Reuters) - Japanese trading house Sojitz established a joint venture with Japan Organization for Metals and Energy Security (JOGMEC) to study gallium production in Australia, Sojitz said on Monday. Gallium, a critical mineral, is used in semiconductors where demand continues to grow with the expansion of electric cars, mobile devices and other electronic items. Sign up here. The joint venture, Japan Australia Gallium Associates (JAGA), signed a joint development agreement with U.S. Alcoa (AA.N) , opens new tab to explore the feasibility of producing gallium at Alcoa's alumina refinery in Western Australia. The companies aim for final investment decision by the end of 2025, Sojitz said on Monday, and production in 2026 with gallium to be sold in Japan and in other countries. https://www.reuters.com/world/asia-pacific/japans-sojitz-jogmec-team-up-with-alcoa-gallium-study-australia-2025-08-04/
