2025-09-17 10:18
Baht up 8% against U.S. dollar in 2025 Exports and tourism sector facing strain New government promising to tackle baht appreciation BANGKOK, Sept 17 (Reuters) - The strengthening of Thailand's currency to a four-year high is a threat to exports and tourism, two key growth engines for the struggling economy and posing a major economic headache for the incoming government of Prime Minister . The baht is up 8% against the U.S. dollar this year, the second-largest gain amongst Asian currencies, behind only the Taiwan dollar. Sign up here. "A strong baht reduces export and tourist revenue via both pricing and volume effects," said Kobsidthi Silpachai, head of Capital Markets Research at Kasikornbank. "The baht's strength comes at a bad time ahead of the peak tourist season, which is likely to prompt holiday makers to shop elsewhere for better value." Southeast Asia's second-largest economy is struggling with U.S. tariffs as well as sluggish consumption, with households mired in debt. The state planning agency forecast economic growth of 1.8% to 2.3% this year, less than last year's 2.5% expansion, which already lagged regional peers. A rare bright spot has been exports, which have seen a value increase of 14.4% annually in the first seven months. A slowdown is now expected, following a 19% tariff imposed by the United States, Thailand's largest export market. Faced with a stronger baht, Thai manufacturers are also struggling to compete with regional rivals like Vietnam, even though it has a marginally higher tariff rate of 20%. "Instead of benefiting from the tariff gap, the strong baht ends up putting us at a disadvantage in exports. That's why many industries are complaining," said Nava Chantanasurakon, Vice Chairman of the Federation of Thai Industries. "If we don't address the baht issue, confidence in exports will drop." Industries that are particularly feeling the pain include the electronic parts industry and the automotive sector, he said. Thailand is a regional auto production and export hub for top Japanese carmakers such as Toyota (7203.T) , opens new tab and Honda (7267.T) , opens new tab, as well as dominant Chinese EV brands. The other risk is to the vital tourism sector, already grappling with a 7% year-on-year fall in foreign arrivals. Theinprasit Chaiyapatranun, president of the Thai Hotels Association, said that a stronger baht hadn't significantly impacted hotel bookings or the broader tourism sector so far, but that could change. "If the baht remains strong for an extended period - such as continuing into next year - there will likely be an impact," he said. The baht's rally comes during a change of guard in government and also at the Bank of Thailand. Outgoing central bank governor Sethaput Suthiwartnarueput said on Tuesday that discussions are now underway to find and deploy measures to counter the currency's strength. Prime Minister Anutin, whose cabinet is yet to take charge, has also said he will tackle the baht's appreciation. "The prime minister is listening," said Nava of the Federation of Thai Industries. "We don't want to see the government interfere with the central bank, but find a way for better coordination." https://www.reuters.com/world/asia-pacific/thailands-strong-baht-threatens-exports-tourism-amid-global-headwinds-2025-09-17/
2025-09-17 08:49
LONDON, Sept 17 (Reuters) - Average house prices in the United Kingdom in July were 2.8% higher than a year earlier, down from a 3.6% rise in the year to June, the Office for National Statistics said on Wednesday. Growth in property prices slowed sharply after hitting a two-year high in March when buyers rushed to complete sales before an expiry of a tax break on many house purchases. Sign up here. Private-sector rental growth slowed to 5.7% in the 12 months to August from 5.9% in July, the ONS added, and the smallest annual increase since December 2022. https://www.reuters.com/world/uk/uk-house-prices-rise-28-12-months-july-2025-09-17/
2025-09-17 07:52
JAKARTA, Sept 17 (Reuters) - Indonesia's central bank delivered another surprise interest rate cut on Wednesday, its sixth cut since it kicked off an easing cycle in September last year, saying economic growth needed to be strengthened. Bank Indonesia trimmed the benchmark 7-day reverse repurchase rate (IDCBRR=ECI) , opens new tab by 25 basis points to 4.75%, the lowest since late 2022. All 31 economists surveyed by Reuters had expected no change. Sign up here. The bank also cut its overnight deposit facility rate (IDCBID=ECI) , opens new tab by 50 basis points and its lending facility (IDCBIL=ECI) , opens new tab rate by 25 basis points to 3.75% and 5.50%, respectively. Governor Perry Warjiyo reiterated at Wednesday's press conference that BI would continue to assess the room for further cuts in an effort to lift economic growth. BI has had to balance the need to keep the rupiah currency stable and the need to support growth during the easing cycle. BI has now cut its main interest rate by a total of 150 basis points since September last year. Markets have been unsettled by two weeks of protests and unrest across many cities from late August and then last week's abrupt sacking of respected finance minister Sri Mulyani Indrawati. There have also been concerns about the central bank's independence following a "" deal that will see BI help fund state programmes. And parliament is discussing changes that could strengthen the requirement for BI to support growth and allow parliament to evaluate board members and recommend their removal to the president. Southeast Asia's largest economy grew 5.1% in the second quarter from a year earlier, the fastest pace in two years, but new finance minister Purbaya Yudhi Sadewa has said there were signs of slowing in the third quarter. Earlier this week the government unveiled a stimulus package worth nearly $1 billion for the fourth quarter, including food handouts and an infrastructure building programme that could create some jobs. Purbaya last week criticised BI for keeping liquidity conditions too tight, and moved more than $12 billion of government funds from the central bank to commercial banks to be used for loans. Warjiyo emphasised on Wednesday that the banking system has ample liquidity to support loan distribution and economic growth, and urged banks to lower their interest rates. https://www.reuters.com/world/asia-pacific/indonesia-central-bank-delivers-surprise-rate-cut-boost-growth-2025-09-17/
2025-09-17 07:46
JAKARTA, Sept 17 (Reuters) - Indonesia's central bank delivered another surprise interest rate cut on Wednesday, its sixth cut since it kicked off an easing cycle in September last year, as it looks to stimulate demand while inflation is low. Bank Indonesia trimmed the benchmark 7-day reverse repurchase rate (IDCBRR=ECI) , opens new tab by 25 basis points to 4.75%, the lowest since late 2022. All 31 economists surveyed by Reuters had expected no change. Sign up here. The bank also cut its overnight deposit facility rate (IDCBID=ECI) , opens new tab by 50 basis points and its lending facility (IDCBIL=ECI) , opens new tab rate by 25 basis points to 3.75% and 5.50%, respectively. https://www.reuters.com/world/asia-pacific/indonesian-central-bank-delivers-surprise-rate-cut-2025-09-17/
2025-09-17 07:40
FRANKFURT/PRAGUE, Sept 17 (Reuters) - Commodity trader and investment company ResInvest Group said it is in talks to buy Datteln 4, the 1 gigawatt coal-fired power plant Uniper (UN0k.DE) , opens new tab must sell as part of the German utility's government rescue in 2022. Datteln 4, located near Dortmund in Germany, is the most valuable asset on Uniper's list of asset disposals required by the European Union in exchange for approving Berlin's 13.5 billion euro ($15.9 billion) bailout, and a sale would mark a major step in the group's restructuring. Sign up here. Talks over the sale of Datteln 4, which has to be divested by end-2026, could wrap up by the end of the week, two people briefed on the matter said, adding no formal decision had been taken yet. Uniper declined to comment. A deal would further expand ResInvest's portfolio after the company, which is based in the Czech Republic and Switzerland, last year bought two coal-fired power plants in Poland with a combined capacity of 568 megawatts from CEZ (CEZP.PR) , opens new tab. The group, founded by Czech investor Tomas Novotny, in April also bought a stake in Australian mining group Fenix Resources Limited (FEX.AX) , opens new tab and invested in dry bulk vessel firm Mira Bulk. "We can confirm that discussions are currently underway," a spokesperson for ResInvest said in an e-mailed statement, without providing further details. A third source familiar with the matter said that a sale could value the 1.052 GW plant, which has been operational since 2020 and supplies power to Deutsche Bahn (DBN.UL), at around 1 billion euros, less than the 1.5 billion it cost to build. Uniper finance chief Jutta Doenges last month said that demand for Datteln 4 was decent and that progress around the sale, which was initiated last year, was expected in the second half of 2025. ($1 = 0.8477 euros) https://www.reuters.com/sustainability/climate-energy/commodity-trader-resinvest-talks-buy-unipers-datteln-4-power-plant-2025-09-17/
2025-09-17 07:35
Russia: dialogue with the U.S. continues on various issues Sakhalin-1 cited as a prime example of resumed cooperation MOSCOW, Sept 17 (Reuters) - Russian Deputy Foreign Minister Sergei Ryabkov said on Wednesday that Moscow was ready to deepen discussions with the U.S. on energy cooperation, including on the Sakhalin 1 project, RIA reported. Ryabkov also said that Russia was in contact with the U.S. on various issues, and that dialogue continued. Sign up here. "I can mention Sakhalin-1 as the most obvious example of the work that has begun in this area," he was quoted as saying by RIA. Russian president Vladimir Putin signed last month a decree that could allow foreign investors, including top U.S. oil major Exxon Mobil to regain shares in the Sakhalin-1 oil and gas project. The signing of the decree came on the day Putin met Donald Trump in Alaska for a summit where opportunities for investment and business collaboration were on the agenda, alongside talks to find peace in Ukraine. Exxon previously held a 30% operator share in the lucrative project, and is the only non-Russian investor to have quit its stake. The U.S. major took an impairment charge of $4.6 billion to exit its Russian business after Moscow sent troops into Ukraine in February 2022. https://www.reuters.com/business/energy/russia-is-ready-deepen-discussions-with-us-sakhalin-1-project-ria-reports-2025-09-17/
