2024-10-21 03:04

MUMBAI, Oct 21 (Reuters) - The Indian rupee is expected to hold near all-time lows on Monday amid possible outflows related to the Hyundai Motors India initial public offering and foreign equity outflows. The one-month non-deliverable forward indicated that the rupee will open barely changed from the last close of 84.0650 and not too far away from the 84.0775 lifetime low. For the rupee, the dip past 84 after holding near the level for a number of weeks has been fairly uneventful. Last week, the currency traded in a narrow 10-paisa range. The Reserve Bank of India is trying to make sure that volatility remains muted, intervening regularly to control the pace at which the rupee depreciates. The RBI all through Friday' session supported the rupee, which dipped to an all-time low. The RBI's defence of the rupee likely spurred the biggest weekly decline in India forex reserves in more than two years. In the week through Oct. 11 when the rupee weakened past 84 for the first time ever, India's forex reserves fell by $10.75 billion, data released by the central bank showed. The central bank had intervened to manage the impact of foreign outflows. Overseas investors have taken out $9.2 billion from local equities so far this month amid paring of India allocations in favour of China. "You would think that these outflows are likely to persist this week. In addition, you may have the Hyundai money moving out," a currency trader at a bank said. He was referring to the Hyundai Motor India's $3.3-billion initial public offering. Its parent Hyundai Motor is likely to take the money out, possibly this week, traders said. Meanwhile, Asian currencies were mostly higher. China cut its key lending rates, as expected, at the monthly fixing. KEY INDICATORS: ** One-month non-deliverable rupee forward at 84.18; onshore one-month forward premium at 10.25 paise ** Dollar index down at 103.43 ** Brent crude futures up 0.3% at $73.3 per barrel ** Ten-year U.S. note yield at 4.08% ** As per NSDL data, foreign investors sold a net $869.1mln worth of Indian shares on Oct. 17 ** NSDL data shows foreign investors sold a net $42.6mln worth of Indian bonds on Oct. 17 Sign up here. https://www.reuters.com/markets/currencies/rupee-will-need-support-central-bank-amid-possible-outflows-2024-10-21/

2024-10-21 01:16

Oct 21 (Reuters) - Bank of America (BAC.N) , opens new tab on Monday extended its guaranteed exchange rates by up to one year, the longest tenor in the industry, in an effort to reduce the risks to cross-currency transactions amid rising volumes. A locked-in foreign exchange spot rate would help companies mitigate exposure to currency fluctuations and simplify treasury management processes such as forecasting and reconciliation, the bank said. "For corporate treasurers, volatile FX markets exacerbate the challenge of cash flow forecasting," said Daniel Stanton, head of transactional FX in global payments solutions at Bank of America. "Securing guaranteed FX rates of longer tenors can help them improve forecasting, which will lead to better informed decision-making,", Stanton said. Much of the cross-border payments are generated by businesses in e-commerce, services and manufacturing industries. (This story has been refiled to fix dateline) Sign up here. https://www.reuters.com/markets/rates-bonds/bofa-extends-guaranteed-fx-rate-window-year-2024-10-21/

2024-10-20 21:50

Oct 21 (Reuters) - A look at the day ahead in Asian markets. The trading week in Asia opens against an increasingly bullish global backdrop fueled by continued strength in U.S. stocks, but with local sentiment more circumspect due to the uncertainty surrounding China's deep-rooted economic problems. The People's Bank of China is expected to cut its loan prime rates on Monday, Beijing's latest move in a series of monetary, fiscal and liquidity support measures to shore up the imploding property sector, revive growth and fight off deflation. PBOC Governor Pan Gongsheng told a financial forum in Beijing on Friday that the LPR will be reduced by 20 to 25 basis points on Monday, the official Xinhua news agency quoted Pan as saying. The PBOC also on Friday unveiled new measures to inject more than $100 billion into the country's stock market, which helped lift Shanghai's blue chip , opens new tab equity index by 3.6%, while the MSCI Asia ex-Japan index rose 1.6% for its best day since Sept. 26. China's economic "data dump" on Friday wasn't as bad as many feared it could have been, and annual GDP growth in the third quarter was slightly above consensus at 4.6%. But as economist Phil Suttle notes, the past two quarters have been unusually weak, delivering 2.75% growth on a seasonally-adjusted annualized basis, "the weakest two-quarter growth rate in modern times" outside of COVID-related shutdowns. Little wonder Beijing has sprung into action. Stocks have responded positively, but bond yields are sliding again. They initially spiked higher on hopes the support measures, which include substantial bond issuance, will reflate the economy but 10-year yield is once again within sight of 2.00%. U.S.-Sino trade wars have been pushed to the forefront of investors' minds again after Republican presidential candidate Donald Trump said he would impose additional tariffs "at 150% to 200%" on China if China were to "go into Taiwan," the Wall Street Journal reported on Friday. The U.S. juggernaut, meanwhile, keeps rolling on - economic data are beating expectations, GDP growth is tracking well over 3%, incoming earnings are strong, and Wall Street is hitting new highs. But perhaps the optimism is overdone. Analysts at Raymond James note that short-term options and technical indicators are getting skewed, suggesting the market may be "ripe for a period of consolidation or vulnerable to a near-term pullback." Financial conditions are easing around the world, as central banks cut rates and stocks march higher. On that score, investors in Asia will keep close tabs on the dollar, which has recovered recently and is at a three-month high. Friday's Morning Bid Asia newsletter incorrectly stated that Malaysia would announce GDP data later in the day. The preliminary GDP will be released on Monday, Oct. 21. Here are key developments that could provide more direction to markets on Monday: - China loan prime rate decision - Malaysia GDP (Q3) - Reserve Bank of Australia deputy governor Andrew Hauser speaks Sign up here. https://www.reuters.com/markets/asia/global-markets-view-asia-graphic-2024-10-20/

2024-10-20 18:14

CAIRO, Oct 20 (Reuters) - President Abdel Fattah al-Sisi warned on Sunday Egypt may be forced to re-evaluate its $8 billion programme with the IMF if international institutions do not take into account the extraordinary regional challenges the country is facing. Egypt signed an $8 billion financial support package with the International Monetary Fund in March that requires it to reduce subsidies on fuel, electricity and other commodities and to allow its currency to float freely -- measures that have triggered public fury. The IMF package unlocked billions of dollars of additional funds from the World Bank and the European Union. On Friday, Egypt raised prices on a wide range of fuel products for the third time this year, with diesel and gasoline prices increasing by between 11% to 17%. In June, it raised the price of subsidised bread by 300%. Prime Minister Mostafa Madbouly said in July that fuel prices would continue to rise gradually through to the end of 2025. "As for the programme we're engaged in now, and this is a message we're sending to ourselves and to concerned international institutions, the Fund and the World Bank and all the institutions, we are doing this under extremely difficult regional and global circumstances," Sisi said at a conference. Egypt had lost $6-7 billion in revenues the last seven to 10 months, a situation could continue for at least another year, he added. Attacks on Red Sea shipping by Yemen's Houthis, who say they are acting in solidarity with Palestinians in Gaza, has diverted traffic from the Suez Canal, causing revenue to fall to $870 million in the second quarter from $2.54 billion a year earlier. "The programme we have agreed upon with the fund -- and that is an important matter that I am telling the government and myself -- if this challenge will hurt public opinion, that people cannot bear it, we must re-evaluate our situation," Sisi said. Egyptian officials are attending the IMF and World Bank annual meetings in Washington this week, when they are expected to hold talks with officials from the two institutions. Sign up here. https://www.reuters.com/world/africa/president-sisi-warns-regional-troubles-may-force-egypt-re-evaluate-imf-accord-2024-10-20/

2024-10-20 14:27

BELGRADE, Oct 20 (Reuters) - Serbian President Aleksandar Vucic said he thanked Russian President Vladimir Putin on Sunday for helping his country secure sufficient supplies of natural gas for the winter. Russia and Serbia have a three-year gas supply contract which expires in March 2025. The phone call, the first between the two leaders for nearly two and a half years, was to mark the 80th anniversary of the liberation of Belgrade from fascism and to discuss bilateral issues, said Vucic, Putin's closest ally in Europe. "We have had a long, good, open and meaningful conversation," the Serbian president said in a video on Instagram. "I especially thanked him for helping... to secure sufficient natural gas quantities from Russia to Serbia this winter," he said. Serbia, which was bombed by NATO during the 1999 war in Kosovo, has historically close ties to Russia but also aspires to join the European Union. Serbia's government has come under pressure from Western countries to align with the bloc and impose sanctions on Russia over its invasion of Ukraine. Vucic said on Sunday that Serbia did not plan to deviate from its stance to not impose sanctions. Sign up here. https://www.reuters.com/world/europe/serbias-vucic-thanks-putin-natural-gas-supplies-2024-10-20/

2024-10-20 13:00

OTTAWA, Oct 20 (Reuters) - The two main parties contesting an election in the western Canadian province of British Columbia were tied after most votes had been counted, provisional results showed on Sunday, and it could be days before a winner emerges. The incumbent left-leaning New Democratic Party (NDP), in power for seven years, had won 40 seats and was leading in six while the right-leaning Conservative Party had won 40 and was leading in five. The Green Party had won two. The Canadian Broadcasting Corp said the result could depend on out-of-district votes and mail-in ballots, with the latter not due to be fully counted until Oct. 26. A party needs 47 seats in the provincial legislature to capture a majority in what is traditionally one of Canada's greenest provinces. The Conservatives, who benefited from voter fatigue with the NDP government, promised to scrap a longstanding tax on carbon emissions and clean fuel standard and also expand the liquefied natural gas export industry. The result could mirror that of the 2017 election, when the Green Party held the balance of power after neither of the main parties won a majority. The then Liberal Party won more seats but the NDP took power after signing a deal with the Greens. Sign up here. https://www.reuters.com/world/americas/no-clear-winner-british-columbia-election-with-most-votes-counted-2024-10-20/