2024-11-27 04:50

MUMBAI, Nov 27 (Reuters) - The Indian rupee weakened on Wednesday, pressured by strong demand for the U.S. dollar from public sector banks, mostly related to the monthly expiry of currency futures, alongside importers' dollar bids for month-end payments, traders said. The rupee was at 84.4425 against the U.S. dollar as of 10:00 a.m. IST, down 0.1% from its close of 84.3275 in the previous session. The weakness in most Asian currencies also weighed on the rupee, with the Indonesian rupiah down 0.4% and leading losses. Public sector banks were spotted bidding for dollars, with the demand most likely related to the expiry of the November month-end futures contract, a senior trader at a bank said. Traders typically execute spot-future arbitrage trades to benefit from the small gap in the two rates when the Reserve Bank of India (RBI) intervenes in the futures market. The daily fix was also quoting at a slight premium, signalling elevated demand to buy dollars at the daily reference rate -- used for settlement of cash-settled derivatives on the rupee -- published by the RBI in the afternoon. The pressure from dollar bids related to the futures expiry is expected to persist until at least a little after noon local time, a second trader at a bank said. Meanwhile, the dollar-rupee overnight swap rate rose, signalling likely dollar inflows. Traders reckoned that the inflows could be related to Indian sovereign bonds in the JP Morgan emerging market bond index, where their weightage is expected to rise to 6% this month. Meanwhile, the dollar index was little changed at 106.8 after the minutes of the Federal Reserve meeting showed policymakers were divided about how much further they may need to cut interest rates. Investors now await U.S. PCE inflation and jobless claims data due later in the day. Sign up here. https://www.reuters.com/markets/currencies/rupee-weighed-down-by-heavy-dollar-demand-currency-futures-expiry-2024-11-27/

2024-11-27 04:49

Nov 27 (Reuters) - Shares of India's NTPC Green Energy (NTPG.NS) , opens new tab, the renewable energy arm of power producer NTPC (NTPC.NS) , opens new tab, jumped as much as 14% in their trading debut on Wednesday, as investors bet on the country's growing clean energy needs. The stock was up 12.4% at 121.35 rupees as of 12:27 p.m. IST, compared to its offer price of 108 rupees and valuing the company at 1.02 trillion rupees ($12.08 billion). It was targeting a valuation of $10.8 billion. The broader stock market (.NSEI) , opens new tab, (.BSESN) , opens new tab was flat. "NTPC Green's robust and diversified portfolio, consistent revenue growth, and strategic importance as an NTPC subsidiary have led to a positive market revaluation," said Shivani Nyati, Head of Wealth at Swastika Investmart. NTPC Green's profit nearly doubled to 3.45 billion rupees, and revenue grew over 35% to 19.63 billion rupees in the last financial year. Its $1.2 billion IPO was the biggest in the country's renewable energy industry, as per Dealogic data -- was oversubscribed by more than twofold as investors flocked to the rapidly expanding sector amid the government's push to increase the usage of renewable energy. India has been scrambling to meet its clean energy targets and has ramped up investments and expanded capacity. It has to spend $385 billion by 2030 to meet its targets after falling short in 2022, per Moody's Ratings. That demand also helped NTPC Green's peer Waaree Energies (WAAN.NS) , opens new tab surge 66% in its trading debut earlier this year in what has been a red-hot IPO market. As of Nov. 13, close to 300 Indian companies had raised more than $15.5 billion in IPOs this year, nearly double the $7.4 billion raised in 2023, according to LSEG data. The stock market has hit multiple record highs for most of this year, helping the appetite for public listings. However, the market has eased in the past month due to weak corporate earnings and an exodus of foreign investors. ($1 = 84.4400 Indian rupees) Sign up here. https://www.reuters.com/business/energy/indias-ntpc-green-energy-rises-324-trading-debut-2024-11-27/

2024-11-27 04:32

RBNZ cuts cash rate to 4.25%, meeting expectations Orr says rate track consistent with 50 bp cut in February NZ dollar and interest rate swaps move higher WELLINGTON, Nov 27 (Reuters) - New Zealand's central bank cut rates for a third time in four months on Wednesday and flagged more substantial easing, including a likely half percentage point reduction in February, as inflation moderated to around the bank's target. The Reserve Bank of New Zealand lowered the cash rate by half a percentage point to 4.25%, as expected by most economists in a Reuters poll. RBNZ Governor Adrian Orr said there had been little discussion on cutting by anything other than 50 basis points, a reality check for some in the market who had expected more, but signalled the likelihood of further loosening next year. "Even with 50 basis points, we remain somewhat restrictive. There's significant output gap, significant spare capacity so 50 (bps) felt right," he said at a news conference. He added that the bank's forward projection for the February meeting was consistent with a further 50 basis point cut. The New Zealand dollar and short-end interest rates initially rose after the decision, which hit some in the market had expected a larger 75-basis point cut. However, those gains partly disappeared as investor focus shifted back to the governor's dovish comments. Analysts broadly expect the central bank to cut by at least 25 basis points in February but note there is a lot to happen before the next meeting. "The RBNZ has left the doors wide open for its future moves, with no attempts to temper market expectations for the pace of future cuts," ASB chief economist Nick Tuffley said. "It is also now a three-month gap until the RBNZ next meets, with a full cycle of quarterly domestic data and President Trump’s inauguration in between," he said. Orr said they expect to reach a neutral rate by the end of 2025, which he put at around 2.5% to 3.5%. The neutral rate is considered neither accommodative nor restrictive for the economy. Most of the major retail banks in New Zealand cut their interest rates following the announcement. Kiwibank chief economist Jarrod Kerr said while they expect the central bank to cut by just 25 basis points in February, they saw scope for more easing later on. "We believe rates need to be cut lower than the RBNZ's 2025 forecast track, to stimulate an economy struggling to get out of recession," he said. The central bank noted that economic growth is expected to recover during 2025, as lower interest rates encourage investment and other spending. Employment growth is expected to remain weak until mid-2025 and, for some, financial stress will take time to ease. New Zealand is one of several central banks around the globe that have started cutting rates as inflation has moved lower. Neighbouring Australia, however, is an outlier to the broad easing trend with cuts not expected until the first half of next year. Sign up here. https://www.reuters.com/markets/rates-bonds/new-zealand-cuts-cash-rate-by-50-bps-flags-further-cuts-2024-11-27/

2024-11-27 03:57

HANOI, Nov 27 (Reuters) - Vietnam's Prime Minister Pham Minh Chinh on Wednesday urged the United States to lift export restrictions on some technology and said the country wanted to develop satellite communications. Speaking at an event in Hanoi organised by the American Chamber of Commerce, Chinh also said the two countries should keep good relations and cooperate to foster multilateralism to address global challenges. He did not make reference to possible U.S. tariffs on Vietnam despite threats from the upcoming Trump administration of up to 20% duties on all imports. Vietnam is a significant exporter to the U.S. and has a large trade surplus with Washington. "We hope the United States will lift its embargo on Vietnam for some technologies," Chinh told the conference. "We are not fighting anyone, so why do you keep the embargo?" Chinh said. The U.S. currently limits Vietnam’s access to chemical and biological weapons and to technology that is considered critical to U.S. security. But Vietnam is already permitted to import conventional weapons from the United States, as well as some nuclear and missile technology. The prime minister also said Vietnam wanted to develop satellite communications and was in talks with U.S. aerospace giant SpaceX. He reiterated a call for the United States to recognise the Communist-run country as a market economy, a move that could reduce tariffs on sanctioned trades. Chinh also said that foreign investment flows into Vietnam this year were expected to total around $25 billion. Sign up here. https://www.reuters.com/markets/asia/vietnam-pm-hopes-us-will-recognise-country-market-economy-2024-11-27/

2024-11-27 02:44

MUMBAI, Nov 27 (Reuters) - The Indian rupee is expected to open slightly weaker on Wednesday, tracking declines in most of its Asian peers, with traders awaiting U.S. inflation data due later in the day while expecting the rupee to gradually weaken towards 84.50. The 1-month non-deliverable forward indicated that the rupee will open at 84.34-84.35 to the U.S. dollar, compared with 84.3275 in the previous session. The dollar index was little changed at 106.8. Most Asian currencies declined, with the Indonesian rupiah down 0.4% and leading losses. U.S. President-elect Donald Trump's pledge to levy tariffs on the country's three largest trading partners -- Canada, Mexico and China -- pressured Asian currencies, with the offshore Chinese yuan declining to its weakest in four months on Tuesday. "For Asian currencies, we continue to think the likes of CNH, KRW, THB, and MYR are vulnerable (to tariffs) while INR will be relatively more insulated," MUFG Bank said in a note. Indeed, the rupee fared better than most of its Asian peers after Trump's comments, supported by dollar inflows related to the rebalancing of MSCI's global equity indexes. With the inflow out of the way, traders expect the rupee to consolidate between 84.20 and 84.50 in the near term, although with a slightly negative bias. On the day, the rupee is likely to be pressured by dollar demand related to month-end payables of importer merchants, a salesperson at a private bank said. "Price-action is largely flow dependent as the bias (on USD/INR) is on the higher side but interbank traders remain wary of entering long bets," the salesperson said. Last week, the Reserve Bank of India asked banks to trim speculative long bets on the dollar-rupee pair as the currency weakened to its all-time low of 84.5075, Reuters has reported. Investors now await U.S. personal consumption expenditure (PCE) inflation, due later in the day, for cues on the future path of Federal Reserve policy rates. KEY INDICATORS: ** One-month non-deliverable rupee forward at 84.47; onshore one-month forward premium at 13.75 paise ** Dollar index at 106.86 ** Brent crude futures down 0.1% at $72.7 per barrel ** Ten-year U.S. note yield at 4.3% ** As per NSDL data, foreign investors bought a net $1.1 billion worth of Indian shares on Nov. 25 ** NSDL data shows foreign investors bought a net $236.8mln worth of Indian bonds on Nov. 25 Sign up here. https://www.reuters.com/markets/currencies/rupee-open-tad-weaker-tracking-asian-peers-us-inflation-data-eyed-2024-11-27/

2024-11-27 00:54

LONDON, Nov 26 (Reuters) - Anglo American (AAL.L) , opens new tab said on Tuesday it will sell more shares in its South African platinum unit, as it accelerates plans to spin it off. Anglo offered 16 million shares for sale in Anglo American Platinum (Amplats) (AMSJ.J) , opens new tab, worth about $535 million, according to a bookrunner. An earlier sale of its 5.3% stake in the platinum unit netted about $400 million. The placing will raise cash for Anglo American, the parent company of Amplats, as it pushes forward with a wider restructuring plan that is aimed at focusing its operations on copper and iron ore mining and increasing value. Anglo said on Monday it had reached deals to sell its coal assets in Australia for about $4.9 billion as part of the plan, which also includes shedding underperforming nickel and diamond assets. The London-listed miner is reshaping its business after fending off a $49 billion takeover bid from larger rival BHP (BHP.AX) , opens new tab in May. The offering should broaden the free float of Amplats and reduce the number of shares distributed to Anglo American shareholders after the spinoff, which is planned by the end of 2025. Sign up here. https://www.reuters.com/markets/commodities/anglo-sells-more-amplats-shares-ahead-spinoff-platinum-unit-2024-11-27/