2026-01-09 05:05

South Korea to allow around-the-clock FX trading from July Authorities have kept a tight grip on FX due to capital flight fears MSCI classifies South Korea as an emerging market due to FX President Lee's market reform drive underpins KOSPI rally in 2025 SEOUL, Jan 9 (Reuters) - South Korea said on Friday it will open up its currency market to allow 24-hour trading starting in July, further removing restrictions on onshore trading in a bid to win an upgrade to developed-market status, the finance ministry said. After experiencing capital flight during the Asian Financial Crisis in the late 1990s, South Korea has maintained a restricted currency-trading regime, which Morgan Stanley Capital International (MSCI) has called an impediment in securing a long-anticipated upgrade to developed-market status. Sign up here. "We will prepare in the first half a roadmap for the internationalisation of the won aimed at dramatically improving the won's accessibility and increasing demand, such as offshore won financing," Vice Finance Minister Lee Hyoung-il said. "And, we will follow through on a roadmap for MSCI inclusion as announced," Lee said in a news conference for the ministry's biannual economic policy plan announcement. Plans for 24-hour trading come two years after South Korea extended trading hours to allow foreign entities to trade the won from abroad as it vies for a place in a major global stock index. Up until two years ago, the dollar-won market was only open for six-and-a-half hours a day, and direct dollar transactions could only be done through two domestic interbank networks. The ministry also plans to introduce a new system for offshore won trading, loosen reporting requirements and make the registration process easier for market participation, along with other efforts to increase transaction demand, such as cross-border payment settlements and overseas financing. An upgrade to developed market status is one of President Lee Jae Myung's major policy pledges after he has rolled out market reforms and tax measures to boost the domestic stock market since he took office in June 2025. Riding the policy drive, the KOSPI stock benchmark (.KS11) , opens new tab was the world's best performer last year and rose 76% to mark its strongest performance since 1999. The won was trading at its weakest levels since 2009 until late December, before it sharply rebounded on market-stabilising measures rolled out near year end to snap a four-year losing streak with a 2.3% gain. Improving short-selling regulations, requiring more corporate filings to be released in English and making securities transactions easier were among other measures proposed in the stock-market upgrade roadmap released as part of the biannual announcement. STRONGER GROWTH The ministry forecast the trade-reliant economy will grow 2.0% in 2026, up from 1.8% seen in August, on improving domestic demand and robust exports, after expanding 1.0% in 2025. Inflation is projected at 2.1% in 2026, the same as in 2025. Exports are expected to rise 4.2% this year, after growing 3.8% last year, on strong semiconductor demand for artificial intelligence investment, even as global trade slows on U.S. tariffs, according to the ministry. To enhance the competitiveness of the semiconductor industry, the ministry said it would prepare a five-year policy plan in the fourth quarter, including financial and tax support as well as regulatory improvements. The government will continue efforts to make South Korea one of the world's top three AI powers to raise growth potential, the ministry said. It also vowed policy support for the defence, biopharmaceutical, petrochemical and steel industries. Regarding a $350 billion investment package pledged as part of a U.S. trade deal last year, the ministry said it would be an opportunity to bolster the shipbuilding and nuclear energy sectors as well as seek new U.S. markets. The government also plans to introduce tax incentives for domestic production in the second half amid worries about the manufacturing sector weakening due to increasing overseas investments. https://www.reuters.com/world/asia-pacific/south-korea-open-fx-market-around-clock-bid-msci-upgrade-2026-01-09/

2026-01-09 04:52

MUMBAI, Jan 9 (Reuters) - The Indian rupee slipped on Friday, pressured by dollar demand linked to maturing non-deliverable forward positions and corporate hedging as global markets awaited a key U.S. Supreme Court ruling on trade tariffs. The currency closed at 90.1625 against the U.S. dollar, down 0.1% on the day but little changed week-on-week. Sign up here. Weakness in local stocks also weighed, with the BSE Sensex (.BSESN) , opens new tab and Nifty 50 (.NSEI) , opens new tab logging their steepest weekly falls since late September. (link) Traders pointed to heightened dollar demand at the central bank's daily reference rate and hedging activity from companies, which weighed on the local unit on Friday. State-run banks were intermittently spotted offering dollars near the day's low for the rupee, which helped limit its losses, two traders said. The central bank stepped in firmly to shore up the currency earlier in the week, but traders said the rupee remains vulnerable without progress in U.S.-India trade talks, or a reversal in portfolio outflows. India's trade pact with the United States was delayed because Prime Minister Narendra Modi did not make a telephone call to President Donald Trump to close a deal they were negotiating, Commerce Secretary Howard Lutnick said on Friday. Foreign investors, meanwhile, have already sold nearly $1 billion of local stocks over January so far, adding to the record near $19 billion outflow last year. Market participants are also bracing for an approaching Supreme Court decision on President Donald Trump's use of emergency tariff powers and a key U.S. jobs report later in the day. A decision against the Trump administration "is likely to see a renewed escalation on trade policy uncertainty which we would argue is US dollar negative although given a ruling against would be less surprising we may not see big market moves," MUFG said in a note. https://www.reuters.com/world/india/rbi-backstop-temper-rupee-pressure-tepid-asia-outflows-2026-01-09/

2026-01-09 00:56

Reliance may buy Venezuelan oil if allowed Venezuelan oil could help India diversify energy imports Reliance may resume Venezuelan imports if discounts attractive NEW DELHI, Jan 8 (Reuters) - India's Reliance Industries Ltd (RELI.NS) , opens new tab, operator of the world's largest refining complex, said on Thursday it would consider buying Venezuelan oil if it is permitted for sale to non-U.S. buyers. "We await clarity on access for Venezuelan oil by non-U.S. buyers and will consider buying the oil in a compliant manner," a spokesperson at Reliance Industries said in an emailed response to Reuters' queries. Sign up here. State-run refiners Indian Oil Corp (IOC.NS) , opens new tab and Hindustan Petroleum Corp (HPCL.NS) , opens new tab will also consider buying Venezuelan oil if sales are allowed to non-U.S. companies, industry sources said. The two companies did not immediately respond to Reuters' requests for comment. RELIANCE STOPPED BUYING VENEZUELAN OIL LAST YEAR Caracas and Washington reached a deal this week to export up to $2 billion worth of Venezuelan crude, some 30-50 million barrels, to the United States, after U.S. forces captured President Nicolas Maduro on January 3. Reliance stopped buying Venezuelan oil from March 2025 as President Donald Trump announced a 25% tariff on nations buying crude from the South American producer. The conglomerate received its last Venezuelan oil cargo in May last year. Reliance's two refinery complexes in western Gujarat state, with a combined capacity of about 1.4 million barrels per day of crude oil, allow it to process cheaper and heavier crudes such as Venezuela's Merey. "If Venezuelan barrels re-enter global markets, they are likely to come at a discount, improving feedstock optionality and economics for compatible refiners, even if volumes remain limited," said Sumit Ritola, lead research analyst, refining and modelling at Kpler. AN ACCEPTABLE ALTERNATIVE TO RUSSIAN ENERGY? India's HPCL-Mittal Energy, Nayara Energy, IOC, and Mangalore Refinery and Petrochemicals (MRPL.NS) , opens new tab have also imported Venezuelan oil in the past, LSEG trade flows show. Ritola said Venezuelan oil offered India a 'politically acceptable diversification option' to Russian oil. India has faced pressure from Western nations to curb Russian oil purchases after Moscow's invasion of Ukraine on concern oil revenue may be financing Russia's war effort. The United States last year doubled tariffs on Indian goods to 50%, citing India’s heavy buying of Russian crude. A Republican Senator said on Wednesday that Trump had 'greenlit' legislation aimed at sanctioning countries doing business with Russia. While some state refiners and Nayara Energy are expected to continue importing Russian oil, Reliance has said it would not receive Russian oil in January. The decision could sharply cut India's Russian oil imports during the month to the lowest in years. "We’ve already seen that Reliance has reduced its intake of Russian crude, which indicates refiners are willing and able to adapt when compliance or trade risks rise," Ritola said. https://www.reuters.com/business/energy/indias-reliance-industries-says-will-consider-buying-venezuelan-oil-2026-01-08/

2026-01-09 00:44

US West Coast jet fuel prices nearly $40 a barrel higher than Asia Supply curtailment in US West Coast is main supportive factor Asian markets are sufficiently supplied Jan 8 (Reuters) - The premium for prompt U.S. West Coast jet fuel to Asia has reached its widest in nearly two years, LSEG data showed on Thursday, as refinery outages curbed U.S. supply and slower Chinese demand increased the fuel's availability in Asia. The February Los Angeles jet fuel derivative price is nearly $40 a barrel higher than Asia's benchmark , according to the data, a level last hit in mid-February 2024. Sign up here. Traders say they hope the increased jet fuel price spread for the two regions on paper will lead to more shipments from Asia to the U.S. West Coast. Weak demand for jet fuel in China has added to the downward pressure on Asia's prices, said Matias Togni, analyst at NextBarrel. China's total flight numbers have fallen by 1.6% so far this year from the same period last year, data from flight tracking service Airportia showed. CLOSURES AND REFINERY OUTAGES REDUCE US OUTPUT In the United States, refinery outages have reduced fuel output and permanent plant closures will further tighten supplies, analysts said. The Asia-US West Coast jet fuel price spread has widened as the availability of jet fuel barrels in the US West Coast has shrunk, mainly because of an extended outage at PBF Energy's refinery in Martinez, California, Vortexa's head of APAC analysis Ivan Mathews said. In addition, a jet fuel unit at Chevron's 285,000 bpd El Segundo refinery has been under repair since a fire in October. U.S. West Coast jet fuel stocks were near two-month lows of 11.19 million barrels on January 2, data from the U.S. Energy Information Administration showed. The region's refinery utilisation fell to 80% in the week ended January 2, compared with 85.4% in the same period last year, the data showed. Further tightening supply, Valero plans to gradually wind down operations at its 145,000 bpd Benicia refinery in California from February, the company said on Wednesday, after Phillips 66 shuttered its 139,000-bpd Los Angeles site late last year. Together the two plants account for about 11% of the total refining capacity in the U.S. West Coast. ASIA-USWC SHIPMENTS MAY RISE Two trade sources said they expected Asian jet fuel exports to the U.S. West Coast to hit 500,000-600,000 tons (3.94-4.72 million barrels) this month as sellers try to cash in on higher margins despite the prompt delivery timeframe. So far this month, shipments are slightly below 100,000 metric tons, ship-tracking data from Kpler and LSEG showed. https://www.reuters.com/business/energy/us-west-coast-jet-fuels-premium-asia-near-its-widest-nearly-two-years-2026-01-08/

2026-01-09 00:39

Dollar on track to extend winning streak into fourth day Anticipated Supreme Court tariff ruling not happening on Friday US job growth slows in December Dollar hits one-year high against Japanese yen NEW YORK, Jan 9 (Reuters) - The dollar gained on Friday after data showed slower than expected U.S. jobs growth, suggesting the Federal Reserve could leave interest rates unchanged later this month. The unemployment rate fell to 4.4% last month from a revised 4.5% in November, the U.S. Labor Department reported on Friday, even as employers added 50,000 jobs in the month. Economists polled by Reuters had forecast a gain of 60,000. Sign up here. The latest job market data appears to give the central bank a bit of breathing room to leave short-term borrowing costs where they are, as Federal Reserve Chair Jerome Powell last month signaled policymakers are inclined to do at least in the near term. Financial markets had been bracing for a possible Supreme Court decision that could strike down President Donald Trump'ssweeping tariffs. But the court will now not issue that ruling on Friday, though a decision could still come next week. The U.S. economy added 50,000 jobs in December, according to Labor Department data released on Friday. That was lower than an estimated increase of 60,000 jobs forecast by economists in a Reuters poll. The dollar was up 0.2% to 0.801 against the Swiss franc , headed for the second straight week of gains. The dollar index rose 0.25% to 99.13 and was set for the second consecutive week of gains. "In real life, the standard error margin for non-farm payrolls is 20,000 and so I don't think the market is going to pay much attention to this," said Steve Englander, head of global G10 FX Research at Standard Chartered. Fed funds futures are pricing an implied probability of 95% that the central bank holds interest rates at its next two-day meet on January 27 and 28, up from 68% a month ago, the CME Group's FedWatch tool shows. YEN WEAKENS The Japanese yen weakened following a report that Prime Minister Sanae Takaichi is considering calling a snap election for parliament's lower house in the first half of February. Data showed Japanese household spending , opens new tab unexpectedly grew in November from a year earlier, indicating that consumption accelerated before the Bank of Japan lifted its policy rate to a 30-year high in December. "(This) means April BoJ hike "could" happen technically (as assumption was spring election = no chance of BoJ move until after event), but equally Takaichi will likely not be happy to see a faster pace than every 6 months either and she'll win back more power of LDP and be able to shut down internal opposition from hawks more," said Jordan Rochester, head of fixed incomme, currencies & commodities strategy at Mizuho EMEA. The dollar hit a one-year high of 158.185 against the yen . It was last up 0.64% to 157.88 yen, on track for the second straight week of gains. In Europe, German exports , opens new tab unexpectedly fell in November as shipments to other EU countries and the U.S. dropped, while industrial output rose despite expectations of a decline. The euro was down 0.2% at $1.1635, on track for the second straight week of losses against the dollar. Meanwhile in China, annual consumer price inflation , opens new tab accelerated in December to its highest in almost three years. The dollar weakened 0.06% to 6.977 versus the offshore Chinese yuan. In other currencies, the pound sterling was down 0.24% to $1.3403, while the Canadian dollar weakened 0.32% versus the greenback to C$1.391 per dollar. And the Australian dollar weakened 0.13% versus the greenback to $0.6688. Bitcoin fell 1.05% to $90,247.14. https://www.reuters.com/world/asia-pacific/dollar-advances-with-us-jobs-data-supreme-court-ruling-view-2026-01-09/

2026-01-09 00:21

BRASILIA, Jan 8 (Reuters) - A judge on Brazil's federal audit court (TCU) on Thursday agreed to a request from the central bank to submit for a plenary decision on whether the court should inspect central bank documents related to the liquidation of Banco Master. Earlier this week, TCU Judge Jhonatan de Jesus had ordered the inspection in a single-judge ruling, a move challenged by the central bank on the grounds that, under the court's own rules, a decision of that nature must be taken collectively by the full panel. Sign up here. Jesus' move triggered a public backlash after he also suggested he could take steps to block asset sales during Banco Master's liquidation. Markets have been tracking TCU and Supreme Court actions in the case, considered unusual for a bank wind-down in Brazil, as uncertainty grows over investor compensation. Lawyers for Banco Master's controlling shareholder, Daniel Vorcaro, cited the possibility of TCU reversing the liquidation in a motion opposing a request by the central bank-appointed liquidator, EFB Regimes Especiais de Empresas, for U.S. recognition of the process in the Southern District of Florida bankruptcy court. Despite the motion filed by Vorcaro's lawyers, the court ruled for the recognition of the process, a decision showed on Thursday. Local media have reported that Vorcaro, a young banker with strong political ties, owns multiple properties and assets in the United States through indirect holdings. In a filing seen by Reuters, EFB said through its lawyers Vorcaro "is suspected of having transferred massive wealth to himself at the expense of creditors and investors." Vorcaro's lawyers did not respond to a request for comment. The central bank ordered Banco Master's liquidation in November on the same day federal police arrested Vorcaro in a probe over fraudulent credit securities. He was later released with an ankle monitor. Although Banco Master accounts for less than 1% of banking assets in Latin America's largest economy, its collapse has drawn scrutiny because the lender helped fuel rapid growth by issuing high-yield debt marketed as being covered by Brazil's private deposit guarantee fund (FGC). Investors who financed that expansion are awaiting potential FGC payouts totaling about 41 billion reais ($7.6 billion). https://www.reuters.com/business/finance/brazil-full-audit-court-decide-inspection-documents-banco-master-liquidation-2026-01-08/