2024-01-09 10:43

MANILA, Jan 9 (Reuters) - The Philippines' department of agriculture said on Tuesday it has imposed an indefinite ban on imports of poultry and related products, including wild birds, from Belgium and France following a bird flu outbreak there. "We're doing this to protect the health of our local poultry population as well as poultry workers and consumers since H5N1 is a virus that can be transmitted to humans by infected animals," Agriculture Secretary Francisco Tiu Laurel said in a statement. Bird flu, which is carried by migrating wild birds and can then be transmitted between farms, has ravaged flocks around the globe in recent years, disrupting supply, pushing up food prices and raising concern of a risk of transmission to humans. France and Belgium, which share a border, reported the bird flu outbreak in their bird populations to the World Organization for Animal Health in November and December, respectively. The Philippines' import ban will also prevent traders from bringing in Belgian and French poultry products including poultry meat, day-old chicks, hatching eggs, and poultry semen into the Philippines, the Department of Agriculture said. In 2023, the Philippines imported 426,620 metric tons of poultry meat, 3.78% higher than the previous year, with Belgium accounting for 0.59% and France 0.01%. (This story was refiled to add the '%' sign in the last paragraph) https://www.reuters.com/world/asia-pacific/philippines-bans-poultry-imports-belgium-france-halt-bird-flu-spread-2024-01-09/

2024-01-09 10:08

MUMBAI, Jan 9 (Reuters) - The Indian rupee ended little changed on Tuesday after dollar demand from state-run banks ate into the local unit's early gains in light of a proposal to include eligible Indian bonds in the Bloomberg Emerging Market Local Currency Index. The rupee ended at 83.1150 against the U.S. dollar, barely changed compared to its close at 83.1375 in the previous session. Late on Monday, Bloomberg Index Services proposed including eligible Indian bonds in its emerging market local currency index from September. The local unit had risen to an intraday high of 83.0450 early in Tuesday's session on the back of positive sentiment but dollar demand from state-run banks ate into those gains, traders said. "(It) seems that the market is convinced that 83.00 will hold and hence intraday (dollar) buying comes," a foreign exchange trader at a private bank said, referring to the persistent dip-buying interest (on USD/INR). The dollar index was up slightly at 102.35 while most Asian currencies ticked up, led by the Thai baht, which rose 0.4%. The rupee should appreciate further given supportive global cues, but dollar demand from oil companies and likely absorption of inflows by the Reserve Bank of India have capped gains, Abhilash Koikkara, head of forex and rates at Nuvama Professional Clients Group said. Investors now await key U.S. consumer inflation data due on Thursday which will impact expectations of potential easing of policy rates in the world's largest economy. The month-on-month core consumer price index (CPI) inflation is forecast to be steady at 0.3% in December, according to a Reuters poll. Market participants are currently pricing a 42% chance that the Federal Reserve will hold policy rates steady in March, up from 21% a week earlier, according to CME Group's FedWatch tool. https://www.reuters.com/markets/currencies/rupee-closes-little-changed-awaits-key-us-inflation-data-2024-01-09/

2024-01-09 09:02

MUMBAI, Jan 9 (Reuters) - The Indian rupee was higher on Tuesday, aided by an uptick in its Asian peers and positive sentiment in light of a proposal to include eligible Indian bonds in the Bloomberg Emerging Market Local Currency Index. The rupee was at 83.0950 against the U.S. dollar as of 10:10 a.m. IST, higher by 0.05% compared with its close at 83.1375 in the previous session. The dollar index was slightly weaker at 102.15, while most Asian currencies ticked up, with the Thai baht leading gains up by 0.4%. The rupee was also aided after Bloomberg Index Services on Monday proposed the inclusion of eligible Indian bonds in its EM market local currency index from September. The dollar-rupee pair was "well-offered" on Tuesday but it will be key to watch if it falls below the 83 handle, a foreign exchange trader at a private bank said. "A fall below 83 could create room for a slide towards 82.90," the trader added. The dollar slipped on Monday after the Federal Reserve Bank of New York's latest survey of consumer expectations showed that projection of inflation over the short run fell to the lowest in nearly three years. "Despite the encouraging fundamentals... the ongoing tug-of-war between the intrinsic strength of the rupee and the RBI's (Reserve Bank of India) interventions have capped the rupee from appreciating," Amit Pabari, managing director at FX advisory firm CR Forex, said. Meanwhile, rupee forward premiums ticked up on Tuesday with the 1-year implied yield rising 3 basis points to 1.83%, the highest in three months. Investors now await key U.S. consumer inflation data due on Thursday which is likely to shape expectations on potential easing of policy rates in the world's largest economy. Investors are currently pricing in a nearly 63% chance that the Federal Reserve will cut policy rates in March, according to CME Group's FedWatch tool. https://www.reuters.com/markets/currencies/rupee-inches-up-tracking-asian-peers-forward-premiums-rise-2024-01-09/

2024-01-09 08:59

MUMBAI, Jan 9 (Reuters) - Indian importers and exporters left a bigger portion of their foreign currency exposures unhedged in 2023, relying on the Reserve Bank of India (RBI) holding the rupee in a narrow range. Forward contracts purchased by importers to hedge future foreign currency payments dropped 14.5% on-year in 2023, while hedging by exporters declined 12.5%, according to Reuters' calculations based on data from Clearing Corp of India. Forward contracts are the most commonly used derivative instruments for hedging. "For us, the drop (in forward hedging) has been bigger, more in the vicinity of 20% to 25%," a senior FX salesperson at a private bank said. "It's hardly a surprise that companies, especially larger ones, see value in making less use of forwards in the current environment." A small part of the hedging via forwards has been replaced by options, said the salesperson, who declined to be named as their company policy does not allow media interactions. India's total imports and exports between January and November 2023 declined 8% and 5%, respectively, from a year earlier. December data has not been released. RANGEBOUND RUPEE The RBI's regular intervention in the spot and forward markets shrunk the intraday swings and overnight risks on the rupee last year, pushing volatility expectations to 15-year lows and making the rupee among the least volatile Asian currencies. The currency moved in a narrow 3.5% band through the year, including in a mere 1% band in the December quarter. India's central bank has "actively managed the currency movement throughout the year", Ashutosh Tikekar, head of global markets at BNP Paribas India, said. "A stable FX environment and reduction in carry helped clients to under-hedge without worrying much about the profit and loss." On the outlook for 2024 hedges, Tikekar said India's forex reserves pile provides "enough confidence to clients on RBI continuing with its (FX) policy in near future". Carry is the return on holding a higher-yielding currency vis-a-vis a lower-yielding currency. In the wake of the U.S. interest rate hike cycle, the carry on the dollar/rupee pair dropped to a 15-year low in November. Low carry deters exporters from hedging in the forward market. For importers, low carry is an incentive to hedge more, but not when the currency is very stable, bankers said. https://www.reuters.com/markets/currencies/indian-companies-took-larger-forex-risk-2023-counting-cenbank-support-2024-01-09/

2024-01-09 06:49

JAKARTA, Jan 9 (Reuters) - China's BYD (002594.SZ), the world's biggest seller of battery electric vehicles (BEVs), will launch its cars in Indonesia next week, the company said on Tuesday. The launch comes amid efforts from Indonesia to accelerate adoption of EVs in a bid to reduce emissions. https://www.reuters.com/business/autos-transportation/chinese-ev-giant-byd-launch-cars-indonesia-next-week-company-2024-01-09/

2024-01-09 06:46

New Maldives president in China ahead of any visit to India Maldivian president Muizzu set to meet China's Xi Jinping Muizzu to seek more Chinese investment, trade, tourists BEIJING, Jan 9 (Reuters) - At an "Invest Maldives" forum in a southern Chinese port city, the Maldivian president shook hands and exchanged words with smiling local officials on a China visit set to deepen bilateral ties as the archipelagic nation pirouettes away from India. After the forum in Fuzhou on Tuesday, Mohamed Muizzu and his delegation will meet with Chinese President Xi Jinping and Premier Li Qiang in Beijing during his week-long visit, where pacts from infrastructure to tourism are expected to be signed. Muizzu became president in November after winning on his "India Out" campaign platform under which he called New Delhi's huge influence a threat to sovereignty. His government has since asked dozens of locally based Indian military personnel to leave. And in an apparent snub to India, Muizzu is in China this week, before any visit to his country's giant neighbour. In Fuzhou, the Chinese city designated as the start of China's maritime "Silk Road", Muizzu said China remained one of his country's "closest allies and developmental partners", according to a statement released by his office. Increasing export of fish products to China under the two countries' free trade agreement will be a key priority, Muizzu added. Fishing is the largest source of employment in the Maldives, where 99% of its territory comprises the sea. Aquatic products account for over 98% of exports by volume and value. China has already built a presence for itself in the Maldives. Under Xi's Belt and Road Initiative aimed at building a global trade and infrastructure network, China has helped expand the Velana International Airport in Male and built the cross-sea China-Maldives Friendship Bridge. Muizzu said his government was keen to explore partnerships under Belt and Road, including the expansion of the country's central airport and commercial port. Chinese firms have invested $1.37 billion in the Maldives since its decision to join the Belt and Road Initiative in 2014, data from the American Enterprise Institute think tank shows. Last year, China National Machinery Industry Corporation invested $140 million in the Maldives' tourism sector, which accounts for over a quarter of the country's national income. In 2019, Chinese tourists represented 19.7% of foreign visitors, making them the biggest tourist group, although they slipped to third position by 2022 during the pandemic. 'NERVOUSNESS' The Maldives is also a popular destination among Indian nationals, whose presence has grown more prominent in the three years when China's austere pandemic restrictions kept Chinese visitors away. In the latest sign of sagging ties between the two neighbours, #ExploreIndianIslands has become a trending hashtag in India on X instead as some Indians share screenshots of cancelled bookings of Maldivian holidays. Indian Prime Minister Narendra Modi himself last week was snorkelling in Lakshadweep, an archipelago of atolls and reefs off the coast of Kerala, a visit that some viewed as an attempt to draw tourists away from nearby Maldivian islands. "India's strained relations with certain countries in South Asia can be attributed to its perception of being the regional boss," China's Global Times reported on Monday, citing analysts. And, the newspaper added, quoting a Chinese academic, India's current "nervousness" about Muizzu's visit to China showed its "lack of confidence". https://www.reuters.com/world/asia-pacific/maldives-president-courts-investors-china-ties-with-india-sag-2024-01-09/