Latest news with #AnkurBanerjee
Mint
4 days ago
- Business
- Mint
Dollar firms as Mideast worries cast shadow, Norges Bank delivers surprise cut
By Ankur Banerjee and Lucy Raitano SINGAPORE/LONDON (Reuters) -The dollar held mostly steady on Thursday as the threat of a broader Middle East conflict loomed over markets, while a flurry of central bank decisions including a surprise cut from Norway kept traders busy. Rapidly rising geopolitical tensions have boosted the dollar, which has reclaimed its safe-haven status in recent days. Iran and Israel carried out further air attacks on Thursday, with the conflict entering its seventh day. Concerns over potential U.S. involvement have also grown, as President Donald Trump kept the world guessing about whether the United States will join Israel's bombardment of Iranian nuclear sites. The Federal Reserve left rates steady on Wednesday, and now traders are counting down to a Bank of England (BoE) meeting due later in the day, with bets on no change to the base rate. The Swiss franc, meanwhile, was stronger against the dollar following an expected rate cut from the Swiss National Bank. But the surprise came from the Norges Bank, which delivered a 25 bps rate cut, while markets had expected the Norwegian central bank to hold rates. The dollar and the euro both surged against the Norwegian crown, and were last up 0.7% and 0.6% . The crown is still one of the top-performing major currencies against the dollar this year, with a gain of around 11%. Meanwhile, the euro was 0.1% weaker at $1.147. The yen last fetched 145.28 per dollar. The Swiss franc strengthened after the SNB avoided delivering a larger half-point cut. By 0930 GMT, the dollar was 0.4% down against the Swiss franc fetching 0.8157 francs, while the euro fell 0.3% to 0.9369. The dollar index, which measures the currency against six others, was flat at 98.9 and was set for about a 0.8% gain for the week, its strongest weekly performance since late February. Some analysts said investors were looking to cover their short-dollar positions. "The dollar seems ripe for a short-covering rally - especially if the U.S. wades into the Middle East conflict," said Matt Simpson, a senior analyst at City Index. Geopolitical concerns appear to have overshadowed the FOMC outcome, according to Christopher Wong, currency strategist at OCBC. "Risk aversion dominates sentiments, and that puts pressure on risk-sensitive FX." U.S. markets are closed on Thursday for the federal Juneteenth holiday, which could mean liquidity is lower. FED STANDS PAT In a widely expected move, the Fed held rates steady, with policymakers signalling they still expect to cut rates by half a percentage point this year, although not all of them agreed on a need for rate cuts. Fed Chair Jerome Powell said goods price inflation will pick up over the course of the summer as Trump's tariffs start to impact consumers. "Ultimately, the cost of the tariff has to be paid, and some of it will fall on the end consumer," Powell told a press conference on Wednesday. "We know that because that's what businesses say. That's what the data say from the past." The comments from Powell underscore the challenge facing policymakers as they navigate uncertainties from tariffs and geopolitical risks, leaving markets anxious about the path of U.S. interest rates. Still, traders are pricing in at least two rate cuts this year though analysts are unsure of the starting point. "The market is anticipating two 25 bp rate cuts this year, most probably September and December, but, we think the September FOMC will come too soon for the Fed to be comfortable cutting rates," ING economists said in a note. The Australian dollar fell 0.6% at $0.647, while the New Zealand dollar slipped 0.8% to $0.647.
Daily Maverick
12-06-2025
- Business
- Daily Maverick
Stocks slip, dollar droops as trade, geopolitical tensions weigh
Rising Middle East tension dents sentiment, lift oil, gold Markets give lukewarm reception to US-China truce agreement Trump's latest tariff salvo unnerves investors Soft US CPI sets stage for Fed meeting next week By Ankur Banerjee and Johann M Cherian SINGAPORE, June 12 (Reuters) – Global stocks and the dollar slipped on Thursday as investors sized up a benign US inflation report and the fragile trade truce between Washington and Beijing, while rising tensions in the Middle East and lingering tariff anxiety dented risk sentiment. Attention in financial markets this week has been on the US-China trade talks which culminated in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students access to US universities. 'We made a great deal with China. We're very happy with it,' said US President Donald Trump. Markets though were guarded in their response, awaiting fuller, concrete details of the agreement and remained wary of another flare up. Trump also said the US would send out letters in one to two weeks outlining the terms of trade deals to dozens of other countries, which they could embrace or reject, adding yet another dose of uncertainty in the markets. 'The US China deal really just leaves the tariffs in place after they've been cut back following the Geneva meeting, so it doesn't really change things,' said Shane Oliver, head of investment strategy and chief economist at AMP Capital. 'Ultimately the trade tension is yet to be resolved between the US and China.' MSCI's broadest index of Asia-Pacific shares outside Japan was 0.3% lower in early trading after hitting a three year-high on Wednesday. Japan's Nikkei slipped 0.7%, while US and European stock futures fell. China's blue-chip stock index fell 0.37%, moving off the near three-week top it touched in the previous session. Hong Kong's Hang Seng index was down 0.74%, also inching away from Wednesday's three-month high. Trump's erratic tariff policies have roiled global markets this year, prompting hordes of investors to exit USassets, especially the dollar, as they worried about rising prices and slowing economic growth. The euro, one of the beneficiaries of the dollar's decline, rose to a seven-week high and was last at $1.1512. The Japanese yen was 0.4% firmer at 144.03 per dollar. That pushed the dollar index, which measures the US currency against six other key rivals, to its lowest level since April 22. The index is down 9% this year. Data on Wednesday showed US consumer prices increased less than expected in May as cheaper gasoline partially offset higher rents, but inflation is expected to accelerate in the coming months on the back of the Trump administration's import tariffs. The soft inflation report led Trump to renew his call for the Federal Reserve to push through a major rate cut. The president has been pressing for rate cuts for some time even as Fed officials have shrugged off his comments. Traders are pricing in a 70% chance of a quarter-point reduction in the Fed policy rate by September. Policymakers are widely expected to keep rates unchanged next week. AMP's Oliver said the higher prices will flow through either in the form of higher inflation or lower profit margins. 'I suspect it's probably going to be a combination of the two. Therefore it makes sense for the Fed to wait and see what happens rather than rushing into a rate cut.' In commodities, oil prices were pinned at two-month highs, close to $70 a barrel, on worries of supply disruptions in the Middle East after Iran said it will strike US bases in the region if nuclear talks fail and conflict arises with Washington. O/R Gold prices also got a boost from safe-haven flows, with spot gold up 0.5% at $3,370.29.
Yahoo
12-06-2025
- Business
- Yahoo
Stocks slip, dollar droops as trade, geopolitical tensions weigh
By Ankur Banerjee and Johann M Cherian SINGAPORE (Reuters) -Global stocks and the dollar slipped on Thursday as investors sized up a benign U.S. inflation report and the fragile trade truce between Washington and Beijing, while rising tensions in the Middle East and lingering tariff anxiety dented risk sentiment. Attention in financial markets this week has been on the U.S.-China trade talks which culminated in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students access to U.S. universities. "We made a great deal with China. We're very happy with it," said U.S. President Donald Trump. Markets though were guarded in their response, awaiting fuller, concrete details of the agreement and remained wary of another flare up. Trump also said the U.S. would send out letters in one to two weeks outlining the terms of trade deals to dozens of other countries, which they could embrace or reject, adding yet another dose of uncertainty in the markets. "The U.S. China deal really just leaves the tariffs in place after they've been cut back following the Geneva meeting, so it doesn't really change things," said Shane Oliver, head of investment strategy and chief economist at AMP Capital. "Ultimately the trade tension is yet to be resolved between the U.S. and China." MSCI's broadest index of Asia-Pacific shares outside Japan was 0.3% lower in early trading after hitting a three year-high on Wednesday. Japan's Nikkei slipped 0.7%, while U.S. and European stock futures fell. China's blue-chip stock index fell 0.37%, moving off the near three-week top it touched in the previous session. Hong Kong's Hang Seng index was down 0.74%, also inching away from Wednesday's three-month high. Trump's erratic tariff policies have roiled global markets this year, prompting hordes of investors to exit U.S. assets, especially the dollar, as they worried about rising prices and slowing economic growth. The euro, one of the beneficiaries of the dollar's decline, rose to a seven-week high and was last at $1.1512. The Japanese yen was 0.4% firmer at 144.03 per dollar. That pushed the dollar index, which measures the U.S. currency against six other key rivals, to its lowest level since April 22. The index is down 9% this year. [FRX/] Data on Wednesday showed U.S. consumer prices increased less than expected in May as cheaper gasoline partially offset higher rents, but inflation is expected to accelerate in the coming months on the back of the Trump administration's import tariffs. The soft inflation report led Trump to renew his call for the Federal Reserve to push through a major rate cut. The president has been pressing for rate cuts for some time even as Fed officials have shrugged off his comments. Traders are pricing in a 70% chance of a quarter-point reduction in the Fed policy rate by September. Policymakers are widely expected to keep rates unchanged next week. [0#USDIRPR] AMP's Oliver said the higher prices will flow through either in the form of higher inflation or lower profit margins. "I suspect it's probably going to be a combination of the two. Therefore it makes sense for the Fed to wait and see what happens rather than rushing into a rate cut." In commodities, oil prices were pinned at two-month highs, close to $70 a barrel, on worries of supply disruptions in the Middle East after Iran said it will strike U.S. bases in the region if nuclear talks fail and conflict arises with Washington. [O/R] Gold prices also got a boost from safe-haven flows, with spot gold up 0.5% at $3,370.29. [GOL/] Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12-06-2025
- Business
- Yahoo
Stocks slip, dollar droops as trade, geopolitical tensions weigh
By Ankur Banerjee and Johann M Cherian SINGAPORE (Reuters) -Global stocks and the dollar slipped on Thursday as investors sized up a benign U.S. inflation report and the fragile trade truce between Washington and Beijing, while rising tensions in the Middle East and lingering tariff anxiety dented risk sentiment. Attention in financial markets this week has been on the U.S.-China trade talks which culminated in a framework agreement that would remove Chinese export restrictions on rare earth minerals and allow Chinese students access to U.S. universities. "We made a great deal with China. We're very happy with it," said U.S. President Donald Trump. Markets though were guarded in their response, awaiting fuller, concrete details of the agreement and remained wary of another flare up. Trump also said the U.S. would send out letters in one to two weeks outlining the terms of trade deals to dozens of other countries, which they could embrace or reject, adding yet another dose of uncertainty in the markets. "The U.S. China deal really just leaves the tariffs in place after they've been cut back following the Geneva meeting, so it doesn't really change things," said Shane Oliver, head of investment strategy and chief economist at AMP Capital. "Ultimately the trade tension is yet to be resolved between the U.S. and China." MSCI's broadest index of Asia-Pacific shares outside Japan was 0.3% lower in early trading after hitting a three year-high on Wednesday. Japan's Nikkei slipped 0.7%, while U.S. and European stock futures fell. China's blue-chip stock index fell 0.37%, moving off the near three-week top it touched in the previous session. Hong Kong's Hang Seng index was down 0.74%, also inching away from Wednesday's three-month high. Trump's erratic tariff policies have roiled global markets this year, prompting hordes of investors to exit U.S. assets, especially the dollar, as they worried about rising prices and slowing economic growth. The euro, one of the beneficiaries of the dollar's decline, rose to a seven-week high and was last at $1.1512. The Japanese yen was 0.4% firmer at 144.03 per dollar. That pushed the dollar index, which measures the U.S. currency against six other key rivals, to its lowest level since April 22. The index is down 9% this year. [FRX/] Data on Wednesday showed U.S. consumer prices increased less than expected in May as cheaper gasoline partially offset higher rents, but inflation is expected to accelerate in the coming months on the back of the Trump administration's import tariffs. The soft inflation report led Trump to renew his call for the Federal Reserve to push through a major rate cut. The president has been pressing for rate cuts for some time even as Fed officials have shrugged off his comments. Traders are pricing in a 70% chance of a quarter-point reduction in the Fed policy rate by September. Policymakers are widely expected to keep rates unchanged next week. [0#USDIRPR] AMP's Oliver said the higher prices will flow through either in the form of higher inflation or lower profit margins. "I suspect it's probably going to be a combination of the two. Therefore it makes sense for the Fed to wait and see what happens rather than rushing into a rate cut." In commodities, oil prices were pinned at two-month highs, close to $70 a barrel, on worries of supply disruptions in the Middle East after Iran said it will strike U.S. bases in the region if nuclear talks fail and conflict arises with Washington. [O/R] Gold prices also got a boost from safe-haven flows, with spot gold up 0.5% at $3,370.29. [GOL/]
Yahoo
10-06-2025
- Business
- Yahoo
Dollar steady as traders await details from US-China talks
By Ankur Banerjee SINGAPORE (Reuters) -The U.S. dollar was steady on Tuesday in tight trading as Washington and Beijing remained locked in trade talks that left investors on edge and hesitant in placing major bets while looking ahead to U.S. inflation report later in the week. Top economic officials from the world's two largest economies sought to defuse a bitter dispute that has widened from tariffs to restrictions over rare earths, with trade talks extending to a second day in London. The talks come after U.S. President Donald Trump and Chinese President Xi Jinping spoke by phone last week and at a crucial time for both economies, which are showing signs of strain from Trump's cascade of tariff orders since January. The lack of firm details from the talks despite positive notes from some officials and Trump meant the currency markets were frigid in Asian hours as traders held their position, reluctant to make major moves. The U.S. dollar was little changed against the yen at 144.57 in early trading. The euro last fetched $1.1425 and sterling was 0.1% firmer at $1.3563. "The extension of talks and some positive soundbites from the U.S. officials could offer short-term relief, markets are unlikely to buy into this optimism without real structural progress," said Charu Chanana, chief investment strategist at Saxo. Washington and Beijing are trying to revive a temporary truce struck in Geneva that had briefly lowered trade tensions and calmed markets. "Unlike the Geneva talks, where tariff relief provided easy wins, the London talks are now tackling thornier issues like chip export controls, rare earths, and student visas," said Chanana. "These are long-term, strategic matters—not easily resolved over a few days. That makes it harder to deliver a positive surprise." The Australian dollar, often seen as a proxy for risk sentiment, was flat at $0.652, while the New Zealand dollar was a touch firmer at $0.6058, staying close to the seven-month peak it touched last week. [AUD/] The dollar index, which measures the U.S. currency against six other units, was steady at 98.986, not far from the six-week low it touched last week. The index is down 8.7% this year as investors flee U.S. assets worried about the impact of tariffs and trade tensions on its economy and growth. Investor focus this week will be on the consumer price index report for May, due on Wednesday. The report could give insight into the tariff impact at a time investors are wary of any flare-ups in inflation. The CPI report will be one of the last key pieces of data before the Federal Reserve's June 17-18 meeting, with the U.S. central bank widely expected to hold rates steady. Fed officials have signalled that they are in no rush to cut interest rates and signs of economic resilience will likely cement their stance, but traders are pricing in nearly two 25-basis point cuts by the end of the year.
