2025-01-28 09:07
MUMBAI, Jan 28 (Reuters) - The Indian rupee weakened on Tuesday, as dampened global risk appetite and renewed concerns about trade tariffs under U.S. President Donald Trump kept Asian currencies on the defensive, while a broader risk-off sentiment dominated global markets. The rupee was at 86.53 against the U.S. dollar as of 11:40 a.m. IST, down 0.2% on the day. Asian currencies were broadly weaker as well, although many regional markets shut for local holidays. The offshore Chinese yuan was down 0.3% at 7.27. Trump said on Monday he plans to impose tariffs on imported computer chips, pharmaceuticals and steel in an effort to return production of such essential goods to the U.S. "Malaysia, Singapore and India stand out as the economies within Emerging Asia where these critical products might account for significant proportions of their shipments to the U.S., followed by Taiwan, the Philippines, Thailand and Korea," Barclays said in a note. The Financial Times reported that Trump's pick for U.S. Treasury Secretary, Scott Bessent, has been pushing for new universal tariffs on U.S. imports starting at 2.5% and rising gradually by the same amount each month. In response to the report, Trump said that he wishes to enact universal tariffs that are much bigger than 2.5%. Currency markets are expected to remain acutely sensitive to trade policy-related developments. Meanwhile, broader risk aversion also dominated market sentiment following a selloff in U.S. tech stocks on Monday. The rupee has declined due to weak global cues and is expected to hover between 86.30 and 86.80 in the near term, said Dilip Parmar, a foreign exchange research analyst at HDFC Securities. Meanwhile, dollar-rupee forward premiums slumped after the Reserve Bank of India announced steps to inject liquidity into the banking system. The 1-year dollar-rupee implied yield touched an over-one-month low of 2.12% in early trading before paring some losses. Sign up here. https://www.reuters.com/markets/currencies/rupee-falls-tariff-news-flow-hurts-regional-peers-forward-premiums-drop-2025-01-28/
2025-01-28 08:30
MUMBAI, Jan 28 (Reuters) - Tiger Global and Peak XV backed Indian firm Cred has become the first fintech platform to roll out access to India's central bank digital currency, the company said on Tuesday. The Reserve Bank of India had started a pilot for the e-rupee, which is a digital alternative to the physical currency, in December 2022. Initially, the central bank had permitted only banks to offer access to the digital currency but in April 2024 said it will allow payment firms to offer e-rupee transactions. Alphabet's (GOOGL.O) , opens new tab GooglePay, Walmart-backed PhonePe, AmazonPay and MobiKwik (ONEM.NS) , opens new tab were among the payment firms seeking to join the digital currency pilot, Reuters reported in August 2024. Cred will roll out access for its e-rupee wallet to a select set of users and the issuance of e-rupee tokens into the wallets will be facilitated by YES Bank, the company said in a statement. "Our goal is to make e-rupee transactions frictionless and drive its adoption among the most creditworthy Indians,” Kunal Shah, the founder of Cred, said. While e-rupee transactions had surged initially, they have since declined , opens new tab, reflecting the struggle central banks face globally in popularizing digital currencies. Sign up here. https://www.reuters.com/business/finance/fintech-firm-cred-joins-indian-central-banks-digital-currency-project-2025-01-28/
2025-01-28 07:45
Jan 28 (Reuters) - Pan-European stock exchange Euronext (ENX.PA) , opens new tab on Tuesday announced it would acquire Nasdaq’s (NDAQ.O) , opens new tab Nordic power futures activities. Trading of power futures will be transferred to Euronext Amsterdam, the group said in a press release. The migration is expected to occur in the first half of 2026, it added. Earlier this month, Euronext CEO Stéphane Boujnah indicated the pan-European stock exchange's interest in a deal with Nasdaq Nordic, in line with its strategy to consolidate European financial markets. Sign up here. https://www.reuters.com/markets/deals/euronext-acquire-nasdaqs-nordic-power-futures-business-2025-01-28/
2025-01-28 07:44
Trump expects to issue tariffs on Canada and Mexico this week API shows US crude stocks rise 2.86 million barrels, sources say Protests block oil loading at Libya's two major ports China manufacturing activity contracted in January US set for warmer-than-normal temperatures NEW YORK, Jan 28 (Reuters) - Oil prices settled up on Tuesday, bouncing back from multi-week lows, after the White House reaffirmed U.S. President Donald Trump's plans to issue tariffs on Canadian and Mexican imports this week. Fears of weaker demand linked to soft economic data from China and rising temperatures elsewhere capped gains. Brent crude oil futures settled up 41 cents, or 0.53%, at $77.49 per barrel. U.S. West Texas Intermediate crude futures were up 60 cents, or 0.82%, at $73.77. Brent settled on Monday at its lowest since Jan. 9, while WTI hit its lowest since Jan. 2. The White House said Trump still plans to issue 25% tariffs on Canada and Mexico on Saturday while weighing fresh tariffs on China. "Trump's comments on tariffs kept the market on edge," said Phil Flynn, analyst at Price Futures Group. The tariffs could disrupt the flow of energy products across the U.S. borders with Canada and Mexico. In Libya, local protesters prevented crude oil loadings on Tuesday at Es Sider and Ras Lanuf ports, putting about 450,000 barrels per day of exports at risk. However, fears of supply disruption eased after Libya's state-run National Oil Corp said export activity was running normally after it held talks with protesters. "The market priced in the risk of Libyan oil supply disruption before it became clear that flows for now are not disrupted, with the risk premium evaporating again," UBS commodities analyst Giovanni Staunovo said. "There remains a risk of new disruptions down the road," he added. China, the world's largest crude oil importer, reported on Monday an unexpected contraction in January manufacturing activity, pressuring oil prices. "The general tone of caution in the risk environment, coupled with weaker Chinese PMI numbers that cast further doubt on China's oil demand outlook, may serve as a drag on oil prices," IG analyst Yeap Jun Rong said. China's crude oil demand is also expected to be hit by the latest U.S. sanctions on Russian oil trade. FGE analysts see refineries in Shandong losing up to 1 million barrels per day of crude supply in the near term amid a ban imposed by the Shandong Port Group on U.S.-sanctioned tankers. Several independent refineries in China have halted operations, or plan to do so, for indefinite maintenance periods, sources told Reuters, as new Chinese tariff and tax policies plunge plants deeper into losses. In the U.S., weather forecasts are for warmer-than-normal temperatures through this week, which are also weighing on demand for heating fuels after extreme cold sparked a natural gas and diesel rally in prior sessions. The latest weekly report on U.S. inventories, from the American Petroleum Institute industry group, showed crude stocks rose last week by 2.86 million barrels, market sources said on Tuesday. Traders will be waiting to see if the official inventory report from the Energy Information Administration (EIA) confirms the build. EIA data is due on Wednesday. Oil markets remain jittery, and it will be some time before there is clarity on the ramifications of U.S. policy involving tariffs and sanctions, said Ashley Kelty, an analyst at Panmure Liberum. Sign up here. https://www.reuters.com/markets/commodities/oil-prices-hold-near-two-week-low-weak-china-data-adds-demand-concerns-2025-01-28/
2025-01-28 07:33
COLOMBO, Jan 28 (Reuters) - The Sri Lankan government has started talks with India's Adani Group to lower the cost of power from two wind power projects the group will build in the island nation's northern province, the cabinet spokesperson said on Tuesday. Sign up here. https://www.reuters.com/business/energy/sri-lanka-says-talks-with-adani-group-lower-wind-power-purchase-cost-2025-01-28/
2025-01-28 07:23
HAMBURG, Jan 28 (Reuters) - Germany’s agriculture minister will seek financial aid for farmers hit by the impact of a case of foot-and-mouth disease on a farm in east Germany, the ministry said. The country announced its first outbreak of foot-and-mouth disease in nearly 40 years on Jan. 10 in a herd of water buffalo near Berlin in the Brandenburg region. That remains the only reported case so far. The minister, Cem Oezdemir, said that containing the disease was top priority but he wished that “no farm should close because of foot-and-mouth disease.” The country was seeking crisis aid for farmers from the EU and was also in talks with its finance ministry, he said. Pig prices in the country have stabilised as fears subsided that foot-and-mouth disease would spread, while the EU has indicated that German meat and dairy product sales outside the region containing the case could continue. Some emergency measures to restrict spread of the highly infectious disease, which poses no danger to humans, were lifted but quarantine zones remain in force. Measures to contain the disease often involve bans on imports of meat and dairy products from affected countries. The UK, South Korea and Mexico imposed import bans on Germany, with the British decision causing pain to Germany’s livestock sector. German animal disease research institute Friedrich Loeffler has said three months must pass without a new case before Germany can be regarded as foot-and-mouth free. Sign up here. https://www.reuters.com/world/europe/germany-seeks-aid-farmers-after-foot-and-mouth-disease-case-2025-01-28/
