2025-12-31 02:53
MUMBAI, Dec 31 (Reuters) - The Indian rupee closed out the year with a second straight monthly decline in December, a period in which it fell past the 91-per-dollar mark for the first time, before intervention by the Reserve Bank of India helped spark a recovery. The rupee settled at 89.87 against the U.S. dollar on Wednesday, down 0.1% on the day, taking its losses for the month to 0.5%. The currency dropped 4.7% over 2025, its biggest annual decline in three years. Sign up here. The factors that weighed on the rupee for much of the year remained in place in December, including foreign selling of Indian equities, an increase in importer hedging and the absence of a trade deal with the U.S. "Consistent outflows by foreign investors... and dollar demand from defence, oil and gold are all impacting the rupee," said Anil Bhansali, head of treasury at Finrex Treasury Advisors. The rupee slid to an all-time low of 91.0750 per dollar earlier this month before staging a recovery, largely on the back of RBI intervention. After the rupee slipped past the 91-per-dollar mark, the RBI intervened aggressively on two separate occasions, bankers said, to rein in speculative dollar positions and temper a surge in hedging demand from importers. The central bank's dollar sales helped arrest the rupee's decline and signalled its discomfort with one-way moves. The intervention echoed the RBI's actions in October and November, when it stepped in aggressively to disrupt persistent, one-directional pressure on the rupee. https://www.reuters.com/world/india/rupee-bias-tilts-higher-final-day-year-supportive-asia-fx-momentum-2025-12-31/
2025-12-31 02:42
There will be no FOREX reports on Thursday, January 1, due to the New Year holiday. Sign up here. https://www.reuters.com/world/asia-pacific/dollar-dismal-yen-muted-2025-euro-sterling-shine-2025-12-31/
2025-12-31 00:15
Dec 31 (Reuters) - A Ukrainian drone attack damaged port infrastructure and a gas pipeline in a residential area in Russia's Black Sea port of Tuapse, the regional administration said on Wednesday, adding no injuries were reported. Emergency crews were dispatched to repair the damage, the operational headquarters of the Krasnodar region said on the Telegram messaging app. The port's berth had been damaged, it added. Sign up here. SHOT, a Telegram news channel with sources in Russia's security services, said a series of explosions was heard over Tuapse late on Tuesday and that residents in one district reported a fire. Several Ukrainian media, including the RBC-Ukraine media outlet, posted photos on Telegram appearing to show a large fire burning in the distance at night, with a communications mast silhouetted in the foreground. There was no immediate official comment from Ukraine about the attack. Reuters could not independently verify the report or the extent of the damage. Tuapse is one of Russia’s key Black Sea outlets for oil products, anchored by Rosneft’s (ROSN.MM) , opens new tab export-oriented Tuapse refinery, which has capacity to process about 240,000 barrels per day and supplies products such as naphtha, fuel oil and diesel. The port and the refinery have been hit repeatedly by Ukrainian drone attacks during the war that Russia launched nearly four years ago, with past strikes reported to have sparked fires and at times disrupted operations. https://www.reuters.com/world/europe/ukraine-drone-attack-damages-port-gas-pipeline-tuapse-russia-says-2025-12-31/
2025-12-31 00:11
Gold prices surge due to safe-haven demand and weaker dollar India's gold demand shifts from jewellery to coins and bars Jewellery demand declines, investment gold demand rises in India MUMBAI/LONDON, Dec 31 (Reuters) - For nearly two decades, Mumbai homemaker Prachi Kadam marked every festive season with a gold jewellery purchase, blending tradition with personal style. This year's record rally in prices, however, led her to choose a 10-gram gold coin instead of necklaces or bangles. "I like jewellery because it can be worn during functions, but it's hard to justify paying an additional 15% in making charges," said Kadam, who, like millions of Indians, considers buying gold during festivals to be auspicious. "So I settled for a 10-gram coin this time," she added. Sign up here. Her decision reflects a broader shift in India, one of the world's largest gold markets and where the metal holds deep cultural and financial significance. With prices heading for their biggest annual gain in 46 years, consumers are increasingly turning away from jewellery toward small coins and bars. Strong demand for safe-haven assets, U.S. interest rate cuts and a weaker dollar drove global gold prices up 67% so far this year and saw them hitting a record high of $4,549.7 per troy ounce on December 26. Indian domestic gold prices climbed 77% this year, outpacing the Nifty 50 index's 9.7% gain, aided by a 5% fall in the rupee against the dollar. PRICE SURGE RESHAPES BUYING HABITS Analysts say the trend is cushioning a drop in overall demand and is likely to persist into 2026, echoing a global slowdown in ornament purchases as bullion prices soar. For others, the adjustment means buying less gold rather than abandoning jewellery altogether. Kolkata-based Nibedita Chakraborty said her household budget has not kept pace with rising prices, prompting her to switch to lightweight designs. "Even reducing the weight of a gold necklace by six or seven grams can save more than 100,000 rupees ($1,114)," Chakraborty said. As prices rise, consumers are becoming more design- and value-conscious, said Saurabh Gadgil, chairman of P N Gadgil Jewellers (PNGD.NS) , opens new tab, which launched a new sub-brand for lightweight and lower-carat jewellery in June. "Buyers want pieces that allow them to participate in gold ownership without feeling price pressure, and modern craftsmanship has made lightweight jewellery aspirational rather than entry-level," Gadgil said. India's total gold demand fell 14% year on year in the first nine months of 2025, with jewellery consumption down 26% to 278 metric tons and investment up 13% to 185 tons, the World Gold Council (WGC) said. Investment made up a record 40% of total demand during the period underscoring gold's enduring role as a store of wealth in Indian households. The shift toward investment gold and away from jewellery is expected to persist through 2026, as the metal continues to outperform other asset classes, Prithviraj Kothari, president of the India Bullion and Jewellers Association (IBJA), said. "Consumers are purchasing gold in the form of coins, bars, or gold ETFs, assuming that the rally will continue," Kothari said. India-listed gold-backed exchange-traded funds (ETFs) saw an inflow of $3.3 billion, equivalent to 28.7 tons so far this year, which raised their holdings to 86.2 tons, according to the WGC. Leading industry consultancy Metals Focus expects the softness in India's jewellery demand to carry into 2026, with full-year jewellery consumption projected to decline by a further 9%. With gold becoming less affordable, jewellery consumption has seen a structural shift where consumers are opting for lower caratage and lighter-weight designs, it added. There is growing acceptance of lower-carat jewellery, including 18-carat and 14-carat options, particularly among younger customers and working professionals, said Santosh Kataria, chairman of DP Abhushan Ltd (DPAB.NS) , opens new tab. "These pieces allow buyers to manage budgets while still enjoying appealing designs, making them suitable for everyday wear," Kataria said. https://www.reuters.com/world/india/gold-hits-records-indians-opt-bars-coins-over-jewellery-2025-12-31/
2025-12-30 23:50
Indexes down: Dow 0.2%, S&P 500 0.14%, Nasdaq 0.23% Meta shares up after it buys AI startup Manus Energy, communication services stocks outperform peers Citi shares down after Russia sale triggers currency-related hit NEW YORK, Dec 30 (Reuters) - The S&P 500 and the Nasdaq closed fractionally lower in choppy trading on Tuesday, as gains in communication services stocks were offset by declines in technology and financial stocks, with financials also weighing on the Dow. Communication services shares (.SPLRCL) , opens new tab were among the biggest gainers on the S&P 500, fueled by a 1.1% rise in Meta Platforms (META.O) , opens new tab. The technology company said it would acquire Chinese-founded artificial intelligence startup Manus, accelerating efforts to integrate advanced AI across its platforms such as Facebook and Instagram. Sign up here. Information technology stocks (.SPLRCT) , opens new tab ended slightly lower with Apple (AAPL.O) , opens new tab down 0.3% and Nvidia (NVDA.O) , opens new tab falling 0.4%, while Microsoft (MSFT.O) , opens new tab inched up. On Monday, these heavyweight stocks snapped a six-session winning streak, their longest since September. Last week, the rally had also propelled the S&P 500 (.SPX) , opens new tab to a record high. "The growth rates are going to converge between technology and everything else next year and the valuation gap is so wide, it absolutely is justified to see repositioning," said Mark Hackett, chief market strategist at Nationwide. "It's just a healthy rebalancing of allocations more so than an emotionally driven sell-off (in tech)." Trading volumes remained thin in the holiday-truncated week, which analysts expect could heighten market volatility. Losses in Goldman Sachs (GS.N) , opens new tab and American Express (AXP.N) , opens new tab weighed on the Dow. Citigroup (C.N) , opens new tab fell 0.8% a day after it announced its board approved the sale of its Russian unit, AO Citibank, to Renaissance Capital. The deal will lead to a pre-tax loss of about $1.2 billion, largely related to currency translation. "We believe investors will look past it as a non-core item and focus more on the idea that resolution of another legacy issue is getting closer to the finish line – a positive for (Citi's) ongoing transformation," said R. Scott Siefers, analyst at Piper Sandler in a note. The S&P 500 (.SPX) , opens new tab lost 9.50 points, or 0.14%, to close at 6,896.24 points, the Nasdaq Composite (.IXIC) , opens new tab lost 55.27 points, or 0.23%, to 23,419.08, and the Dow Jones Industrial Average (.DJI) , opens new tab fell 94.87 points, or 0.20%, to 48,367.06 points. The S&P 500 and the Dow are set for their eighth consecutive month of gains, their longest monthly winning streak since 2017. Some investors eye a "Santa Claus rally", in which the S&P 500 typically posts gains over the last five trading days of the year and the first two of January, according to the Stock Trader's Almanac. The U.S. Federal Reserve agreed to cut interest rates at its December meeting only after a deeply nuanced debate about the risks facing the U.S. economy, according to minutes of the latest two-day session. The Fed next meets on January 27-28, with investors currently expecting the central bank to leave its benchmark rate unchanged. The S&P 500 has added about 17% so far this year, as the frenzy to capitalize on artificial intelligence helped the U.S. benchmark edge ahead of Europe's STOXX 600 (.STOXX) , opens new tab, despite investors diversifying away from U.S. stocks earlier in the year dominated by trade disputes. Russia said it would toughen its negotiating stance after accusing Kyiv of attacking a Russian presidential residence. The fading hopes of a peace deal supported oil prices, allowing S&P's energy sub-index (.SPNY) , opens new tab to rise 0.8% and outperform peers. Declining issues outnumbered advancers by a 1.06-to-1 ratio on the NYSE. There were 190 new highs and 80 new lows on the NYSE. On the Nasdaq, 1,780 stocks rose and 2,913 fell as declining issues outnumbered advancers by a 1.64-to-1 ratio. The S&P 500 posted 3 new 52-week highs and one new low while the Nasdaq Composite recorded 33 new highs and 205 new lows. Volume on U.S. exchanges was 12.63 billion shares, compared with the 16.03 billion average for the full session over the last 20 trading days. https://www.reuters.com/business/us-stock-futures-stabilize-after-tech-led-dip-halts-year-end-rally-2025-12-30/
2025-12-30 23:35
Mamady Doumbouya took power in 2021 coup Former special forces commander reversed pledge not to run Guinea is home to newly launched Simandou iron ore mega mine CONAKRY, Dec 30 (Reuters) - Guinea coup leader Mamady Doumbouya has been elected president, according to provisional results announced on Tuesday, completing the return to civilian rule in the bauxite- and iron ore-rich West African nation. The former special forces commander, thought to be in his early 40s, seized power in 2021, toppling then-President Alpha Conde, who had been in office since 2010. It was one in a series of nine coups that have reshaped politics in West and Central Africa since 2020. Sign up here. The provisional results announced on Tuesday showed Doumbouya winning 86.72% of the December 28 vote, an absolute majority that allows him to avoid a runoff. The Supreme Court has eight days to validate the results in the event of any challenge. Doumbouya's victory, which gives him a seven-year mandate, was widely expected. Conde and Cellou Dalein Diallo, Guinea's longtime opposition leader, are in exile, which left Doumbouya to face a fragmented field of eight challengers. DOUMBOUYA REVERSED PLEDGE NOT TO RUN The original post-coup charter in Guinea barred junta members from running in elections, but a constitution dropping those restrictions was passed in a September referendum. Djenabou Toure, the country's top election official who announced the results on Tuesday night, said turnout was 80,95%. However voter participation appeared tepid in the capital Conakry, and opposition politicians rejected a similarly high turnout figure for the September referendum. Guinea holds the world's largest bauxite reserves and the richest untapped iron ore deposit at Simandou, officially launched last month after years of delay. Doumbouya has claimed credit for pushing the project forward and ensuring Guinea benefits from its output. His government this year also revoked the licence of Emirates Global Aluminium's subsidiary Guinea Alumina Corporation following a refinery dispute, transferring the unit's assets to a state-owned firm. The turn toward resource nationalism - echoed in Mali, Burkina Faso and Niger - has boosted his popularity, as has his relative youth in a country where the median age is about 19. POLITICAL SPACE RESTRICTED, U.N. SAYS Political debate has been muted under Doumbouya. Civil society groups accuse his government of banning protests, curbing press freedom and restricting opposition activity. The campaign period was "severely restricted, marked by intimidation of opposition actors, apparently politically motivated enforced disappearances, and constraints on media freedom," U.N. rights chief Volker Turk said last week. On Monday, opposition candidate Faya Lansana Millimono told a press conference the election was marred by "systematic fraudulent practices" and that observers were prevented from monitoring the voting and counting processes. The government did not respond to a request for comment. https://www.reuters.com/world/africa/guinea-coup-leader-doumbouya-wins-presidential-election-provisional-results-show-2025-12-30/
