2024-04-02 10:26
MUMBAI, April 2 (Reuters) - The Indian rupee ended little changed on Tuesday after hovering in a tight band through the session as dollar sales by exporters helped offset weakness in the currency's Asian peers. The rupee closed at 83.3850 against the U.S. dollar, barely changed from its close at 83.40 in the previous session. The local unit hovered between 83.3450 and 83.3950 during the day's session. Asian currencies declined, with the Malaysian ringgit down 0.5% and leading losses. The dollar index was steady near 105 after rising over 0.4% on Monday, boosted by stronger-than-expected economic data. The rupee saw "sideways price action" through much of the session amid relatively muted trading volumes, a foreign exchange trader at a foreign bank said. The Reserve Bank of India is likely to keep offering dollars around 83.45 to prevent the rupee from hitting fresh all-time lows, FX advisory firm IFA Global said in a note. The rupee had hit a record low of 83.45 last week. Meanwhile, open interest on dollar-rupee April month futures fell after brokers informed their clients of an RBI notification that would require that positions in rupee contracts can only be taken against contracted exposures. The notification, due to come into effect on April 5, is expected to significantly drive down volumes in the segment, Reuters reported earlier on Tuesday. Investors now await the release of U.S. job openings data later in the day, alongside remarks from Federal Reserve officials for cues on policymakers' thinking about when the Fed could start cutting rates. The odds of the Fed keeping rates unchanged in June have risen to 41%, from about 30% a week earlier, according to CME's FedWatch tool. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/rupee-ends-flat-wedged-between-weak-asian-peers-exporters-dollar-sales-2024-04-02/
2024-04-02 10:18
ZURICH, April 2 (Reuters) - The Swiss National Bank could consider a rotating chairmanship as it seeks a successor to Chairman Thomas Jordan, who will step down from his post later this year, the head of a group which campaigns for accountability at the SNB said on Tuesday. SNB Vice Chairman Martin Schlegel has been floated by Swiss media and experts as favourite to replace Jordan, who announced last month he would be stepping down after 12 years at the helm. "The SNB could consider allocating the chairman role on a rotating basis," Yvan Lengwiler, chairman of the SNB Observatory, told Reuters. "The chairman is just first among equals, he shouldn't make all the decisions." Currently, the SNB's rate-setting governing board consists of three members - Jordan, Schlegel and newcomer Antoine Martin who joined from the Federal Reserve Bank of New York. Lengwiler likened the situation to the revolving presidency of Switzerland, where each person in a seven-member cabinet takes turns holding the role for one year. "That would restore more equality to the decision making process at the SNB," said Lengwiler, of the University of Basel and a former president of the Swiss government's group of experts on banking stability. Stefan Gerlach, another member of the Observatory, and a former deputy governor of the Central Bank of Ireland, said he thought Jordan had become the dominant voice at the SNB. "It's my impression that Thomas Jordan has been too powerful and more so than intended by the legislation," said Gerlach, who is now chief economist at EFG Bank. "In previous years it was a more collective decision, which makes it less important who the chairman is." In a report published on Tuesday, the Observatory also said the SNB should conduct a broader search for a new member to its governing board. The report said it was not normal practice for the top central bank role to be promoted internally, saying it risked the views of society being ignored. The SNB declined to comment on the report. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/business/finance/swiss-national-bank-should-conduct-broader-search-chairman-successor-report-2024-04-02/
2024-04-02 10:01
April 2 (Reuters) - A look at the day ahead in U.S. and global markets by Amanda Cooper. If there was one area of the U.S. economy that had yet to yield positive news, it was the manufacturing sector and Monday's March survey from the Institute for Supply Management finally brought some. Activity in the manufacturing sector, which has been battered by high interest rates and inflation, grew for the first time in 1-1/2 years last month as production rebounded sharply and new orders increased. Layoffs are still high and input prices - due to steep rises in the cost of gasoline and food - are forging higher. The data triggered the biggest sell-off in Treasuries for several weeks, pushing yields up by the most since mid-February. Futures markets show traders are now placing a roughly 65% chance of a cut in June, but that is up from around 50/50 overnight. More tellingly, the market is pricing in less than 70 basis points, or three quarter-points, in cuts by December, down from the comfortable three that were priced in last week. Federal Reserve Chair Jerome Powell said so himself after the release of the monthly core personal consumption expenditures index on Friday. The economy is on a strong footing and "that means we don't need to be in a hurry to cut", he said. Against that backdrop, the dollar is looking firm and trading around its highest since mid-November against a basket of major currencies. Stock index futures are pointing to a steady-as-she-goes start on Wall Street later, while in Europe, the major indices are on a firmly positive footing. To an extent, the market is in waiting mode this week ahead of Friday's non-farm payrolls report which is expected to show the economy added 200,000 jobs in March. More crucial for the Fed and its policymakers will be wage growth. Average earnings are expected to have risen by 4.1% in March, a touch slower than February's 4.3% rate. Later on, the Job Openings and Labor Turnover Survey (JOLTS) might help give a steer on how tight the labor market is. The job openings component, a measure of demand for labor, fell to 8.863 million in February, but this level was seen at the time to be consistent with an employment market that is gently easing, as opposed to sharply contracting. A lot of the tightness that resulted from the shifts in the job market from COVID has evaporated since job openings peaked at a record 12.182 million in March 2022. Key developments that should provide more direction to U.S. markets later on Tuesday: * February durable goods orders * March JOLTS Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/markets/us/global-markets-view-usa-2024-04-02/
2024-04-02 09:47
BEIJING, April 2 (Reuters) - Bank of China (BoC) (601988.SS) , opens new tab said its net interest margin (NIM) - a key gauge of profitability - will still face significant pressure this year. Vice President Zhang Yi made the remarks in an earnings press conference on Tuesday. Five of China's largest lenders have posted shrinking NIMs, while warning of ongoing property sector risks. Reductions to the benchmark lending rate earlier this year and existing mortgage rates last year have impacted returns from the asset side, said Zhang. "We'll strive to reduce high-cost deposits this year," he said. Sheng Liurong, chief finance officer of China Construction Bank Corp (CCB) (601939.SS) , opens new tab, also said it will further control costs from deposit interest rates, to ease pressure on profitability. There's room for further cuts to the benchmark lending rates this year, he added. Get a look at the day ahead in U.S. and global markets with the Morning Bid U.S. newsletter. Sign up here. https://www.reuters.com/business/finance/bank-china-says-net-interest-margin-will-continue-face-pressure-2024-04-02/
2024-04-02 09:32
TOKYO, April 2 (Reuters) - Former Bank of Japan (BOJ) Governor Haruhiko Kuroda told an informal panel that recent yen declines were excessive, and that there was a possibility authorities could intervene in the currency market, the Nikkei newspaper reported on Tuesday. Kuroda also said the yen was expected to rebound in the medium- to long-term, the paper said, citing several unnamed participants of the closed-door panel held by Columbia University in New York on Monday. Formerly Japan's top bureaucrat overseeing currency policy in the finance ministry, Kuroda served as BOJ governor for a decade until April 2023. On the BOJ's decision to end negative interest rates in March, Kuroda welcomed the move as a first step towards normalising monetary policy, according to Nikkei. Under Kuroda, the BOJ deployed a massive asset-buying programme in 2013 as well as negative interest rates and bond yield control in 2016. The central bank ended these policies at a policy meeting in March. Keep up with the latest medical breakthroughs and healthcare trends with the Reuters Health Rounds newsletter. Sign up here. https://www.reuters.com/markets/currencies/ex-boj-chief-kuroda-sees-recent-yen-falls-excessive-nikkei-says-2024-04-02/
2024-04-02 07:30
FTSE 100 up 0.5%, FTSE 250 adds 0.4% April 2 (Reuters) - British shares started the second quarter higher, supported by a rise in energy and metal miners, while lender HSBC rose following the sale of its Canadian unit. The globally-focussed FTSE 100 (.FTSE) , opens new tab was up 0.5% by 7:17 GMT on Tuesday, while the domestically-oriented FTSE 250 (.FTMC) , opens new tab moved 0.4% higher. Both indexes touched their highest levels in over a year. Leading sectoral gains, precious metal miners (.FTNMX551030) , opens new tab climbed 2.7% as the dollar and Treasury yields held firm after strong U.S. data flagged doubts on the start of interest rate cut cycle. Industrial metal miners (.FTNMX551020) , opens new tab followed with a 2.4% uptick, as concerns of tighter raw material supplies and improved demand prospects pushed copper prices higher, while oil and gas stocks (.FTNMX601010) , opens new tab rose 2%, tracking higher crude prices. Among individual stocks, HSBC Holdings (HSBA.L) , opens new tab gained 1.7% on the prospects of recognising an estimated gain of $4.9 billion in the first quarter of 2024, as it completed the sale of its Canadian unit to Royal Bank of Canada (RY.TO) , opens new tab. The broader banks (.FTNMX301010) , opens new tab index was up 1.2%. ($1 = 0.7973 pounds) The Reuters Daily Briefing newsletter provides all the news you need to start your day. Sign up here. https://www.reuters.com/world/uk/commodity-linked-stocks-boost-london-equities-higher-2024-04-02/
