2025-05-08 03:02

MUMBAI, May 8 (Reuters) - The Indian rupee is likely to inch higher at the open on Thursday, with traders keeping an eye on tensions between India and Pakistan, and on the U.S. dollar, which found support following the Federal Reserve's policy meeting. The 1-month non-deliverable forward indicated that the rupee will open at 84.72-84.74 to the U.S. dollar compared with 84.8250 in the previous session. Sign up here. The Indian rupee on Wednesday posted its sharpest one-day percentage decline in nearly a month after India launched missile strikes on Pakistan and Pakistan-administered Kashmir. In response, Pakistan pledged retaliation, with defence minister Khawaja Muhammad Asif telling broadcaster Geo News that Islamabad would target Indian military installations, not civilians. While Pakistan has vowed to retaliate, the lack of an immediate response will offer slight relief to the rupee, a currency trader bank said. "If Pakistan does follows through and hits India, the rupee will come under renewed pressure," he said. Foreign investors were net buyers of Indian equities on Wednesday, per preliminary data, signalling that they do not foresee a significant flare-up in the India-Pakistan standoff. "The flows reflect a view that the situation, while tense, is unlikely to spiral into a broader conflict," the trader said. ASIA FX FALLS Most Asian currencies dipped against the U.S. dollar on Tuesday after the Fed made no changes to the policy rate, in line with expectations. The dollar index inched up on Wednesday. The central bank noted rising risks of both higher inflation and unemployment, adding to uncertainty over the U.S. economic outlook. U.S policymakers continue to assess the fallout from President Donald Trump's tariff measures. "There will be policy trade-offs if both unemployment and inflation rise, putting the Fed in a difficult predicament," MUFG Bank said in a note. The offshore Chinese yuan dropped past 7.2350 to the U.S. dollar. KEY INDICATORS: ** One-month non-deliverable rupee forward at 84.90; onshore one-month forward premium at 16.5 paise ** Dollar index at 99.66 ** Brent crude futures up 0.4% at $61.3 per barrel ** Ten-year U.S. note yield at 4.28% ** As per NSDL data, foreign investors bought a net $474.5 million worth of Indian shares on May 6 ** NSDL data shows foreign investors sold a net $84.9 million worth of Indian bonds on May 6 https://www.reuters.com/world/india/rupee-recover-spotlight-india-pakistan-tensions-2025-05-08/

2025-05-08 01:54

May 7 (Reuters) - The U.S. Treasury and Commerce departments have formulated plans for a sovereign wealth fund but no final decisions have been made, a White House spokesperson said on Wednesday. "The Administration remains committed to using every tool available to deliver on President Trump’s directive to safeguard America’s national and economic security," the spokesperson said in a statement. Sign up here. Sovereign wealth funds are investment vehicles owned by countries and most act as an investment account, or as a development tool, or a combination of the two. President Donald Trump ordered the creation of the fund in February and has previously said revenue earned from tariffs on U.S. imports could form the basis for a wealth fund. Treasury Secretary Scott Bessent said in February that the plan was to monetize assets currently owned by the U.S. government "for the American people." "There'll be a combination of liquid assets, assets that we have in this country as we work to bring them out for the American people," he said in February. https://www.reuters.com/markets/us/us-has-plans-sovereign-wealth-fund-no-final-decisions-made-white-house-says-2025-05-08/

2025-05-08 01:15

NEW YORK, May 7 (Reuters) - Federal Reserve Chairman Jerome Powell said on Wednesday that he never seeks to meet with any U.S. president and to the extent he has had such a meeting, it's because the elected leader sought the interaction. "I've never asked for a meeting with any president and I never will," Powell said at a press conference following the close of the Fed's policy-setting committee meeting. "There's never a reason for me to ask for a meeting, it's always been the other way." Sign up here. https://www.reuters.com/markets/us/feds-powell-says-he-never-seeks-meet-with-any-president-2025-05-08/

2025-05-08 00:36

TOKYO, May 8 (Reuters) - Bank of Japan policymakers were divided in March over how soon the central bank should raise interest rates again as uncertainty stemming from U.S. tariff policies heightened, minutes of their meeting showed on Thursday. "Downside risks stemming from U.S. policies had rapidly heightened and, depending on future developments in its tariff policy, it was quite possible that these risks would even have a significant negative impact on Japan's real economy," one member said, according to the minutes. Sign up here. The member said the BOJ therefore "would need to be particularly cautious when considering the timing for the next rate hike." Another member said even with heightened uncertainty, the BOJ was not always obliged to conduct monetary policy in an overly cautious manner. The BOJ "might face a situation where it should act decisively," the member said. Another member said the BOJ should factor in firms' and households' inflation expectations, upside risks to prices and progress in wage hikes when making policy decisions at the next meeting. At the March 18-19 meeting, the BOJ kept interest rates steady at 0.5%. Governor Kazuo Ueda warned of heightening global economic uncertainty at a post-meeting briefing, while pointing to the risk that rising food costs and stronger-than-expected wage growth could push up underlying inflation in Japan. Last week, the BOJ again decided to keep interest rates steady. Ueda said the timing for underlying inflation to converge toward the central bank's 2% target has been "pushed back somewhat" - essentially signaling a pause in rate hikes for more clarity on the fallout from the higher tariffs. https://www.reuters.com/markets/asia/boj-divided-over-how-us-policies-impact-rate-hike-timing-march-meeting-minutes-2025-05-08/

2025-05-07 23:56

BUENOS AIRES, May 7 (Reuters) - Argentine state oil company YPF (YPFDm.BA) , opens new tab sank into the red in the first quarter, it reported on Wednesday, swinging to a net profit loss of $10 million, hurt by higher costs and capital expenditures and rising debt. The loss compares to last year's net profit of $657 million in the first quarter. Sign up here. In a statement on Wednesday, YPF said operating costs grew by 26.4% year-on-year. Capex meanwhile grew 4% in the quarter, driven by shale expansion, while net debt grew 16% year-on-year, reaching $8.34 billion. YPF, one of Argentina's top domestic fuel suppliers, said its total production increased 5% year-on-year in the first quarter, including a 6% increase in crude production. Revenues, meanwhile, inched up 7% from a year ago to reach $4.61 billion, hurt by lower seasonal demand for diesel and fertilizers and a decrease in oil export volumes but partially offset by higher local fuel prices. The firm's first-quarter core earnings, or adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) stayed stagnant from a year earlier at $1.25 billion. The firm operates the massive Vaca Muerta shale formation, the second largest unconventional gas reserve in the world and the fourth largest oil reserve, which Argentina is betting on to cement its status as a net energy exporter and to replenish depleted foreign reserves. YPF produced an average of 147,000 barrels per day (bpd) of shale oil between January and March, a 31% growth over the same period in 2024, representing 55% of YPF's total oil production. Oil exports rose 34% in the period from the year-ago quarter to an average of 36,000 bpd, driven by growth in shale oil expansion. https://www.reuters.com/business/energy/argentinas-ypf-swings-net-loss-q1-2025-05-07/

2025-05-07 23:53

SANTIAGO, May 7 (Reuters) - Chinese automaker BYD (002594.SZ) , opens new tab and metals group Tsingshan are backing out of multi-million dollar plans to build lithium cathode plants in Chile, the country's economic development agency said on Wednesday. The retreat by the two huge Chinese companies is a blow to Chile's aim to develop more domestic processing of lithium, a key metal for electric vehicle batteries. Chile is the world's no. 2 lithium producer. Sign up here. Both projects were hit by plunging lithium prices, said government economic development agency Corfo, which in 2023 had tapped BYD and Tsingshan for a preferential lithium price deal as part of its efforts to spur investment in Chile. "The companies selected by Corfo have been affected in their investment decisions by the global market conditions, which have shown a sharp drop in prices," Corfo said in a statement. Tsingshan told Reuters it has withdrawn plans for a $233 million project to produce 120,000 metric tons of lithium iron phosphate (LFP). Chile's national assets ministry told Reuters that BYD filed an intent to withdraw its plans in January. BYD, the world's biggest maker of electric cars, declined to comment. BYD last year flagged delays to a planned $290 million plant, which was expected to produce 50,000 metric tons per year of LFP for cathodes. Chilean newspaper Diario Financiero first reported the scrapped investments. Chile's effort in 2018 to encourage lithium-related investments via a pricing deal also fell apart. Chilean chemical company Molymet, China's Sichuan Fulin Transportation Group Co (002357.SZ) , opens new tab, and a joint venture between Korean firms Posco and Samsung for various reasons withdrew their plans. Tsingshan and BYD would have had access to preferential prices of lithium produced by Chilean miner SQM through 2030, a timeframe that Corfo said also may have influenced the withdrawal of the projects. In addition, Corfo said Tsingshan had wanted to assign the project development to a unit of the company that had not participated in the bidding process, which Corfo said was not possible. Corfo last week opened a second bidding process for a similar scheme, this time to provide a purchasing deal with U.S. lithium producer Albemarle through 2043 for companies that commit to lithium-related projects. Albemarle and the selected investors will be able to use an "alternative form" to determine a price agreement, Corfo said. https://www.reuters.com/markets/commodities/chinas-byd-tsingshan-scrap-plans-chile-lithium-plants-newspaper-reports-2025-05-07/