2025-08-22 06:28

MUMBAI, Aug 22 (Reuters) - The Indian rupee weakened further on Friday, extending its late-session slide from the previous day, as the dollar rose ahead of a speech by Federal Reserve Chair Jerome Powell and on renewed concerns of steep U.S. tariffs on local goods. The rupee fell to an intraday low of 87.4850 and was last at 87.4550, compared with its close of 87.27 in the previous session. On Thursday, the currency had briefly climbed past 87 before reversing course in the afternoon to mark its sharpest one-day decline in a month. Sign up here. "Thursday’s move, and then today, shows tariff fears are back on the table after a brief lull," a Mumbai-based currency trader said, referring to the possibility of Washington imposing additional tariffs of up to 50% on Indian goods from August 27. "The added uncertainty around Powell's speech just makes it harder for the rupee," he added. The dollar index advanced towards 99 ahead of Powell's comments at the Federal Reserve's annual Jackson Hole symposium, while most Asian currencies were weaker on the day. Investors are pricing in an over 80% chance of a rate cut at the Fed’s September meeting, but the question is whether Powell will push back against such aggressive expectations. "We do not expect Powell to decisively signal a September cut, but the speech should make it clear to markets that he is likely to support one," Goldman Sachs said in a note. The brokerage reckons that most Fed policymakers who have mixed feelings about cutting rates next month will be willing to support a reduction if Powell presses for one. https://www.reuters.com/world/india/rupee-backslides-towards-8750-with-powell-tariff-clouds-overhead-2025-08-22/

2025-08-22 06:23

Chinese stocks lead gains in Asia, dollar appreciates Powell to speak at 1400 GMT, markets eye policy clues Japan core inflation slightly ahead of estimates SINGAPORE, Aug 22 (Reuters) - Stocks in Asia mostly clung to safe ranges on Friday as traders awaited a key speech from Federal Reserve Chair Jerome Powell at the annual Jackson Hole symposium this weekend that could shed light on the direction of monetary policy. Financial markets are looking for Powell to provide clues on the likelihood of a September rate cut in the wake of recent signs of job market weakness. Sign up here. MSCI's broadest index of Asia-Pacific shares outside Japan (.MIAPJ0000PUS) , opens new tab gave up early gains and was last down 0.1%, paring its advance to 1.3% so far this month. "Top of mind among investors is what central bankers will say about U.S. tariffs and their impact on economic growth and inflation, and which of these two factors will have a bigger influence on interest rate policy, as central banks grapple with the risk of stagflation," said Vasu Menon, managing director for investment strategy at OCBC in Singapore. Defying the sleepy mood, China's blue-chip CSI 300 Index (.CSI300) , opens new tab jumped 1.8%, on track for a third consecutive day of gains. Tech shares led the advance, after DeepSeek released an upgrade to its flagship V3 AI model and Reuters reported Nvidia (NVDA.O) , opens new tab had asked Foxconn (2317.TW) , opens new tab to suspend work on the H20 AI chip, lending support to shares of Chinese rivals. China's tech-focused STAR 50 index (.STAR50) , opens new tab rose almost 8%. The Nikkei 225 (.N225) , opens new tab veered between gains and losses, and was last down 0.1%. Japanese data showed core consumer prices slowed for a second straight month in July but stayed above the central bank's 2% target, keeping alive expectations for a rate hike in the coming months. That did little to help the yen, though, which was poised for a 1% decline for the week. BOJ Governor Kazuo Ueda will also speak at Jackson Hole this weekend. The dollar index (.DXY) , opens new tab, which tracks the greenback against a basket of currencies of major trading partners, advanced 0.2% to 98.796, as traders parsed speeches from Fed officials who appeared lukewarm to the idea of an interest rate cut next month. S&P 500 futures bobbed between gains and losses and were last trading down 0.1%. The cash gauge on Wall Street is on a five-day losing streak, which has left it on track for its biggest one-week decline this month. Traders had ramped up bets for a September cut following a surprisingly weak payrolls report at the start of this month, and after consumer price data showed limited upward pressure from tariffs. However, market pricing pulled back slightly following the release of minutes from the Fed's July meeting. Traders are now pricing in a 73.3% probability of a cut in September, down from 82.4% on Thursday, according to the CME Group's FedWatch tool. The most likely scenario is that Powell won't provide "any definitive clues" on what the Fed will do next ahead of critical non-farm payrolls and CPI data, said Carol Kong, an economist and currency strategist at Commonwealth Bank of Australia in Sydney. "Given where the current market is, the risk is a stronger U.S. dollar, especially if he challenges the current market pricing of a 25-basis-point cut." Traders are assessing signs that U.S. economic activity picked up pace in August, with PMI data from S&P Global showing the strongest growth in manufacturing orders in 18 months. But the labour market also highlighted pockets of weakness, as the number of Americans filing new applications for jobless benefits rose by the most in about three months last week and the number of people collecting unemployment relief in the prior week climbed to the highest level in nearly four years. The euro slipped, weakening 0.2% to a two-week low of $1.1585 as the EU and the U.S. set out details of a framework trade deal struck in July. Oil prices stabilised, with Brent crude last trading up 0.1% at $67.73 per barrel, following strong gains on Thursday as Russia and Ukraine blamed each other for a stalled peace process, and U.S. data showed signs of strong demand in the top oil consuming nation. Gold was slightly lower, with spot bullion off 0.3% at $3,329.40 per ounce. https://www.reuters.com/world/china/global-markets-corrected-wrapup-2-2025-08-22/

2025-08-22 06:19

Fed Chair Powell to deliver Jackson Hole address at 1400 GMT US weekly jobless claims jump to near 3-month high last week Markets put chance of Fed rate cut next month at 75% Aug 22 (Reuters) - Gold prices edged lower on Friday on a stronger dollar while investors awaited U.S. Federal Reserve Chair Jerome Powell's speech at the annual Jackson Hole symposium that could offer fresh clues on the monetary policy path. Spot gold fell 0.3% to $3,329.19 per ounce by 0607 GMT. U.S. gold futures for December delivery lost 0.3% to $3,372.10. Sign up here. The U.S. dollar index (.DXY) , opens new tab hovered near a two-week high, making gold less attractive to overseas buyers. Fed officials appeared lukewarm on Thursday to the idea of a rate cut next month as investors geared up for Powell's speech, due at 1400 GMT on Friday. "With a Russia-Ukraine peace deal still a possibility, and the USD attracting some buyers, gold is facing headwinds," KCM Trade chief market analyst Tim Waterer said. "But if Powell's message is interpreted as being a dovish shift, the USD could be undone, and gold may be on the move higher again." Futures markets indicate a 75% chance of a quarter-point rate reduction next month, according to CME's FedWatch tool. Recent labour data showed U.S. jobless claims rose last week by the most in nearly three months, while unemployment claims the previous week hit a near four-year high. The challenge for Fed policymakers is that even though there are signs of labour market weakening, inflation remains above the central bank's 2% target and could go higher due to the Trump administration's aggressive tariff hikes. Russian President Vladimir Putin is demanding that Ukraine give up all of the eastern Donbas region, renounce ambitions to join NATO, remain neutral and keep Western troops out of the country, three sources familiar with top-level Kremlin thinking told Reuters. Elsewhere, spot silver was down 0.4% to $38.01 per ounce, platinum fell 0.6% to $1,345.06, and palladium rose 0.2% to $1,113.19. https://www.reuters.com/world/china/gold-edges-down-stronger-dollar-powells-remarks-focus-2025-08-22/

2025-08-22 06:17

LONDON, Aug 21 (Reuters) - The British government said it will take control of a part of Liberty Steel, owned by commodities tycoon Sanjeev Gupta, after the business was placed into liquidation following a petition from its creditors on Thursday. A judge at London's High Court approved the petition for Yorkshire-based Speciality Steel UK, one of Britain's largest steelworks, to be placed into compulsory liquidation, describing the business as "hopelessly insolvent", the BBC reported. Sign up here. The government would cover the ongoing costs of the business while it tries to find a buyer, the report added. The business, which employs 1,450 people and produces steel used in aerospace, defence and power generation, will be placed under a government-appointed liquidator and managers from consultancy Teneo, the government's Insolvency Service said. The government's takeover of the business marks its second intervention in the industry following its move to take control of British Steel's loss-making Scunthorpe plant in April. Liberty Steel is part of Gupta's family conglomerate, GFG Alliance, which has been refinancing its businesses in steel, aluminium and energy after its backer, supply chain finance firm Greensill, filed for insolvency in 2021. It also has operations in other parts of Europe, Australia and the United States. The company said the court's decision was "irrational" and that the plan it had presented would have secured new investment into the steel industry. "Liquidation will now impose prolonged uncertainty and significant costs on UK taxpayers," Liberty Steel Chief Transformation Officer Jeffrey Kabel said in an emailed statement. The government said it was committed to supporting the steel industry. "We know this will be a deeply worrying time for staff and their families, but we remain committed to a bright and sustainable future for steelmaking and steel making jobs in the UK," a government spokesperson said. https://www.reuters.com/world/uk/uk-government-take-over-liberty-steel-division-after-collapse-2025-08-21/

2025-08-22 06:16

Aug 22 (Reuters) - South African mining group Gold Fields (GFIJ.J) , opens new tab raised its interim dividend on Friday as first-half profit more than tripled from a year earlier, driven mainly by record bullion prices and increased production. Gold Fields said it realised an average gold price of $3,281 an ounce in the first half of 2025, up 40% from the same period last year. Sign up here. The Johannesburg-based miner's gold production rose 24% to 1.136 million ounces in the first half. The company maintained its 2025 full-year production forecast at between 2.25 million ounces and 2.45 million ounces. Production benefited from operational improvements at Salares Norte in Chile, South Deep in South Africa, Cerro Corona in Peru and Gruyere in Australia, where output last year was impacted by bad weather and geological challenges. The ramp-up at the new Salares Norte mine progressed well this winter after it was hampered by extreme weather last year, Gold Fields CEO Mike Fraser told Reuters. "We learned, we did spend some additional effort on additional winterisation activities, and pleasingly, the team have actually operated very safely and effectively through the winter period," Fraser said. Salares Norte produced 123,600 gold-equivalent ounces in the first half of 2025 and is expected to reach commercial levels of production in the third quarter of this year, Gold Fields said. The mine is expected to produce between 325,000-375,000 ounces in 2025. Salares Norte will have its first full year of steady-state production in 2026, when the mine is expected to produce 550,000-580,000 ounces, Gold Fields has said. Gold Fields' headline earnings rose to $1.027 billion in the six months to June 30, compared with $320.7 million in the same period last year. The company declared an interim dividend of 7 rand ($0.3948) per share, up from 3 rand per share in the first half of 2024. ($1 = 17.7286 rand) https://www.reuters.com/world/africa/gold-fields-boosts-dividend-profit-triples-record-bullion-prices-2025-08-22/

2025-08-22 05:34

Dollar on course for weekly gain ahead of Powell speech Powell's tone may sway markets as rate cut bets ease Japan inflation data keeps BOJ rate hike on the table SINGAPORE, Aug 22 (Reuters) - The U.S. dollar firmed on Friday and was poised for a strong weekly performance as investors reassessed rate cut wagers ahead of an eagerly anticipated speech from Federal Reserve Chair Jerome Powell that could shape the near-term monetary policy path. A soft July jobs report coupled with big downward revisions to hiring in May and June bolstered hopes of an imminent reduction in borrowing costs, with traders at one point even pricing in a jumbo rate cut for the next meeting in September. Sign up here. But since then cautious comments from other policymakers and economic data flashing inflationary risks have tempered those expectations. Traders are now pricing , opens new tab in a 75% chance of a 25-basis-point rate cut in September, down from 92% a week earlier, CME FedWatch tool showed. Fed officials appeared lukewarm on Thursday to the idea of a rate cut next month, setting the stage for Powell's speech at the annual Jackson Hole conference in Wyoming, which kicked off on Thursday. "Powell is unlikely to pre-commit to a September cut," said Charu Chanana, chief investment strategist at Saxo. "The Fed has a dual mandate, but right now inflation outweighs labour as the bigger risk." "With another inflation and payrolls print still due before the September meeting, Powell has every reason to stay patient and keep optionality open," Chanana said. That might leave the dollar vulnerable after a steady but unspectacular rise in the past week. The euro hit its lowest level since August 6 and was last at $1.1583. The single currency, which has benefited in 2025 from the dollar's decline, is down 0.8% for the week. For the year, it is still up 12%. Sterling was steady at $1.3402, down 1% for the week. The dollar index , which measures the U.S. currency against six rivals, was at 98.75, on course for a 0.9% rise in the week, snapping its two-week losing streak. Market pricing for a September rate cut sets a high bar for Powell to 'out-dove' the market, according to Joseph Capurso, head of international and sustainable economics at Commonwealth Bank of Australia. "We expect a larger lift in the dollar if Powell challenges current high market pricing of a 25 bps September cut. Put another way, the dollar faces asymmetric risks with greater upside potential than downside," Capurso said. The yen eased to 148.63 per dollar, poised for a 1% decline for the week. Data showed core inflation in Japan slowed for a second straight month in July but stayed above the central bank's 2% target, keeping alive expectations for a rate hike in the coming months. "We expect the BOJ to raise its policy rate in October," said Min Joo Kang, senior economist at ING. "Core inflation is likely to remain above 3% for an extended period... This will support the Bank of Japan’s policy of normalisation." The Australian dollar was little changed at $0.6425, set for a 1.2% drop for the week, while the New Zealand dollar eased a tad to $0.58135, on course for a 1.9% weekly decline, its biggest drop in more than four months. https://www.reuters.com/world/africa/dollar-firms-traders-rethink-rate-cut-bets-ahead-powell-speech-2025-08-22/