Latest news with #CharuChanana
Business Recorder
11 hours ago
- Business
- Business Recorder
Dollar set to finish week on upbeat note buoyed by safe-haven appeal
The dollar was set to log its biggest weekly rise in over a month on Friday, as uncertainties about a raging war in the Middle East and the repercussions it could have on the global economy fuelled an appetite for traditional safe havens. The dollar index comparing the U.S. currency against six others is poised for a 0.5% climb this week. The conflict between Israel and Iran shows no signs of subsiding and market participants are nervous about potential U.S. intervention in the region. The two countries have been in a week-long air battle as Tel Aviv seeks to thwart Tehran's nuclear ambitions and cripple the domestic government. The White House said US President Donald Trump will make a decision within the next two weeks about whether to join Israel in the war. The resultant recent spike in oil prices added a new layer of inflation uncertainty for central banks across regions which have been grappling with the potential repercussions of U.S. tariffs on their economies. 'Rising oil prices introduce inflation uncertainty at a time when growth is weakening,' said Charu Chanana, chief investment strategist at Saxo. 'That makes central banks' jobs much harder — do they ease to support growth or hold back to avoid fueling inflation? Most seem to be prioritizing growth concerns for now, assuming that crude gains may not be sustained.' Dollar lower as ME conflict continues In early Asia trading, the euro inched up 0.16% to $1.151, while the dollar weakened against the yen by 0.17% to 145.23 per dollar. Also underpinning the yen's gains was hotter-than-expected inflation data that kept expectations for upcoming interest rate hikes alive. Furthermore, minutes from the Bank of Japan's policy meet this week showed policymakers agreed on the need to keep raising rates that are still at very low levels. The Swiss franc was flat at 0.816 per dollar on Friday but was set for its largest weekly drop since mid-April after the country's central bank lowered borrowing costs. Swiss rates now stand at 0%. Currencies positively correlated to risk sentiment such as the Australian and New Zealand dollars were steady, while sterling was little changed at $1.34. Although the Federal Reserve earlier this week stuck with its forecast of two interest rate cuts this year, Chair Jerome Powell cautioned against giving that view too much weight. Analysts saw the central bank's delivery as a 'hawkish tilt' further underpinning the greenback's gains this week. Investors were, however, taken aback by an unexpected 25 basis point interest rate cut by Norges bank and the krone is down by more than 1% against the dollar this week. Though geopolitical tensions were the main market focus this week, concerns about tariffs and the impact they may have on costs, corporate margins and overall growth are ever-present. These concerns have weighed on the dollar, which is down about 9% this year. Trump's early July tariff deadline looms and sources said that European officials are increasingly resigned to a 10% rate on 'reciprocal' tariffs being the baseline in any trade deal between the U.S. and the EU. Elsewhere, the offshore yuan was little changed at 7.185 after China kept benchmark lending rates unchanged as expected.
CNBC
12 hours ago
- Business
- CNBC
Dollar set to finish week on upbeat note buoyed by safe-haven appeal
The dollar was set to log its biggest weekly rise in over a month on Friday, as uncertainties about a raging war in the Middle East and the repercussions it could have on the global economy fueled an appetite for traditional safe havens. The dollar index comparing the U.S. currency against six others is poised for a 0.5% climb this week. The conflict between Israel and Iran shows no signs of subsiding and market participants are nervous about potential U.S. intervention in the region. The two countries have been in a week-long air battle as Tel Aviv seeks to thwart Tehran's nuclear ambitions and cripple the domestic government. The White House said U.S. President Donald Trump will make a decision within the next two weeks about whether to join Israel in the war. The resultant recent spike in oil prices added a new layer of inflation uncertainty for central banks across regions which have been grappling with the potential repercussions of U.S. tariffs on their economies. "Rising oil prices introduce inflation uncertainty at a time when growth is weakening," said Charu Chanana, chief investment strategist at Saxo. "That makes central banks' jobs much harder — do they ease to support growth or hold back to avoid fueling inflation? Most seem to be prioritizing growth concerns for now, assuming that crude gains may not be sustained." In early Asia trading, the euro inched up 0.16% to $1.151, while the dollar weakened against the yen by 0.17% to 145.23 per dollar. Also underpinning the yen's gains was hotter-than-expected inflation data that kept expectations for upcoming interest rate hikes alive. Furthermore, minutes from the Bank of Japan's policy meet this week showed policymakers agreed on the need to keep raising rates that are still at very low levels. The Swiss franc was flat at 0.816 per dollar on Friday but was set for its largest weekly drop since mid-April after the country's central bank lowered borrowing costs. Swiss rates now stand at 0%. Currencies positively correlated to risk sentiment such as the Australian and New Zealand dollars were steady, while sterling was little changed at $1.34. Although the Federal Reserve earlier this week stuck with its forecast of two interest rate cuts this year, Chair Jerome Powell cautioned against giving that view too much weight. Analysts saw the central bank's delivery as a 'hawkish tilt' further underpinning the greenback's gains this week. Investors were, however, taken aback by an unexpected 25 basis point interest rate cut by Norges bank and the krone is down by more than 1% against the dollar this week. Though geopolitical tensions were the main market focus this week, concerns about tariffs and the impact they may have on costs, corporate margins and overall growth are ever-present. These concerns have weighed on the dollar, which is down about 9% this year. Trump's early July tariff deadline looms and sources said that European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the U.S. and the EU. Elsewhere, the offshore yuan was little changed at 7.185 after China kept benchmark lending rates unchanged as expected.
Mint
13 hours ago
- Business
- Mint
Dollar set to finish week on upbeat note buoyed by safe-haven appeal
(Reuters) -The dollar was set to log its biggest weekly rise in over a month on Friday, as uncertainties about a raging war in the Middle East and the repercussions it could have on the global economy fuelled an appetite for traditional safe havens. The dollar index comparing the U.S. currency against six others is poised for a 0.5% climb this week. The conflict between Israel and Iran shows no signs of subsiding and market participants are nervous about potential U.S. intervention in the region. The two countries have been in a week-long air battle as Tel Aviv seeks to thwart Tehran's nuclear ambitions and cripple the domestic government. The White House said U.S. President Donald Trump will make a decision within the next two weeks about whether to join Israel in the war. The resultant recent spike in oil prices added a new layer of inflation uncertainty for central banks across regions which have been grappling with the potential repercussions of U.S. tariffs on their economies. "Rising oil prices introduce inflation uncertainty at a time when growth is weakening," said Charu Chanana, chief investment strategist at Saxo. "That makes central banks' jobs much harder — do they ease to support growth or hold back to avoid fueling inflation? Most seem to be prioritizing growth concerns for now, assuming that crude gains may not be sustained." In early Asia trading, the euro inched up 0.16% to $1.151, while the dollar weakened against the yen by 0.17% to 145.23 per dollar. Also underpinning the yen's gains was hotter-than-expected inflation data that kept expectations for upcoming interest rate hikes alive. Furthermore, minutes from the Bank of Japan's policy meet this week showed policymakers agreed on the need to keep raising rates that are still at very low levels. The Swiss franc was flat at 0.816 per dollar on Friday but was set for its largest weekly drop since mid-April after the country's central bank lowered borrowing costs. Swiss rates now stand at 0%. Currencies positively correlated to risk sentiment such as the Australian and New Zealand dollars were steady, while sterling was little changed at $1.34. Although the Federal Reserve earlier this week stuck with its forecast of two interest rate cuts this year, Chair Jerome Powell cautioned against giving that view too much weight. Analysts saw the central bank's delivery as a 'hawkish tilt' further underpinning the greenback's gains this week. Investors were, however, taken aback by an unexpected 25 basis point interest rate cut by Norges bank and the krone is down by more than 1% against the dollar this week. Though geopolitical tensions were the main market focus this week, concerns about tariffs and the impact they may have on costs, corporate margins and overall growth are ever-present. These concerns have weighed on the dollar, which is down about 9% this year. Trump's early July tariff deadline looms and sources said that European officials are increasingly resigned to a 10% rate on "reciprocal" tariffs being the baseline in any trade deal between the U.S. and the EU. Elsewhere, the offshore yuan was little changed at 7.185 after China kept benchmark lending rates unchanged as expected. (Reporting by Johann M Cherian in Bengaluru; Editing by Edwina Gibbs)
New Straits Times
14 hours ago
- Business
- New Straits Times
Dollar set to finish week on upbeat note buoyed by safe-haven appeal
KUALA LUMPUR: The dollar was set to log its biggest weekly rise in over a month on Friday, as uncertainties about a raging war in the Middle East and the repercussions it could have on the global economy fuelled an appetite for traditional safe havens. The dollar index comparing the US currency against six others is poised for a 0.50 per cent climb this week. The conflict between Israel and Iran shows no signs of subsiding and market participants are nervous about potential US intervention in the region. The two countries have been in a week-long air battle as Tel Aviv seeks to thwart Tehran's nuclear ambitions and cripple the domestic government. The White House said US President Donald Trump will make a decision within the next two weeks about whether to join Israel in the war. The resultant recent spike in oil prices added a new layer of inflation uncertainty for central banks across regions which have been grappling with the potential repercussions of US tariffs on their economies. "Rising oil prices introduce inflation uncertainty at a time when growth is weakening," said Charu Chanana, chief investment strategist at Saxo. "That makes central banks' jobs much harder — do they ease to support growth or hold back to avoid fuelling inflation? Most seem to be prioritising growth concerns for now, assuming that crude gains may not be sustained." In early Asia trading, the euro inched up 0.16 per cent to US$1.151, while the dollar weakened against the yen by 0.17 per cent to 145.23 per dollar. Also underpinning the yen's gains was hotter-than-expected inflation data that kept expectations for upcoming interest rate hikes alive. Furthermore, minutes from the Bank of Japan's policy meeting this week showed policymakers agreed on the need to keep raising rates that are still at very low levels. The Swiss franc was flat at 0.816 per dollar on Friday but was set for its largest weekly drop since mid-April after the country's central bank lowered borrowing costs. Swiss rates now stand at 0 per cent. Currencies positively correlated to risk sentiment such as the Australian and New Zealand dollars were steady, while sterling was little changed at US$1.34. Although the Federal Reserve earlier this week stuck with its forecast of two interest rate cuts this year, Chair Jerome Powell cautioned against giving that view too much weight. Analysts saw the central bank's delivery as a "hawkish tilt", further underpinning the greenback's gains this week. Investors were, however, taken aback by an unexpected 25 basis point interest rate cut by Norges Bank and the krone is down by more than one per cent against the dollar this week. Though geopolitical tensions were the main market focus this week, concerns about tariffs and the impact they may have on costs, corporate margins and overall growth are ever-present. These concerns have weighed on the dollar, which is down about nine per cent this year. Trump's early July tariff deadline looms and sources said that European officials are increasingly resigned to a 10 per cent rate on "reciprocal" tariffs being the baseline in any trade deal between the US and the EU. Elsewhere, the offshore yuan was little changed at 7.185 after China kept benchmark lending rates unchanged as expected.
Yahoo
13-06-2025
- Business
- Yahoo
Oil and gold prices soar after Israel's attacks on Iran
The price of oil and gold has soared and stock markets have fallen after Israel's strikes against targets in Iran. The escalation of the conflict in the Middle East, the focal point of global oil production, prompted a sharp increase in prices, with Brent crude up more than 10% after news of the attacks broke, reaching its highest level since January. The price later eased but was still up 7.8% at $74.77 a barrel, on course to record the biggest daily rise since March 2022. The increases hit the aviation industry, as airlines cleared the airspace over the region, and investors turned to safe investment assets such as gold and the Swiss franc. Shares in the British Airways owner, IAG, and the budget airline easyJet fell about 4%. The top riser on the FTSE 100 was the weapons producer BAE Systems, up almost 3%, reflecting concerns that the Israel-Iran conflict could escalate. The oil companies BP and Shell were also among the risers, with BP climbing 3% and Shell trading 2% higher. The price of gold was trading about 1% higher at $3,417 (£2,524) an ounce, close to the record high of $3,500 it hit in April. 'The geopolitical escalation adds another layer of uncertainty to already fragile sentiment,' said Charu Chanana, the chief investment strategist at Saxo. Stocks dived in Asia, with Japan's Nikkei down 1.3%, South Korea's Kospi falling 1.1% and Hong Kong's Hang Seng dipping 0.8%. In Europe, major markets across Germany, France, Italy and Spain all fell by at least 1%. In London, the FTSE 100 – which closed at a record high on Thursday – fell 0.3%. US markets are set to follow suit when they open later on Friday, led by a sell-off in Wall Street futures. S&P E-mini futures fell 1.7% and Nasdaq futures dropped 1.8%. Israel, which said its attack was a 'pre-emptive strike' over Iran's nuclear programme, has declared a state of emergency as its military said Tehran had launched 100 drones in retaliation. Marco Rubio, the US secretary of state, called Israel's strikes against Iran a 'unilateral action' and said Washington was not involved. The move to perceived safe haven assets has resulted in the yield on 10-year US Treasury notes falling to a one-month low of 4.31%. The US dollar index rose 0.5%, while the euro fell 0.4% and sterling slipped 0.5%. Derren Nathan, the head of equity research at Hargreaves Lansdown, said: 'It's not just the outlook for Iranian exports that's a concern but also the potential for disruption to shipping in the Persian Gulf's strait of Hormuz, a key route for about 20% of global oil flows and an even higher proportion of liquified natural gas haulage.' Much of the world's oil, as well as key commodities such as grain, pass through busy sea lanes in the Middle East, including the strait of Hormuz. There are concerns in the maritime supply chain that continued conflict between Israel and Iran could lead to a de facto closure of the strait, which is considered a vital entry point for container ships calling at ports in the wider Gulf region. All UK-flagged ships were advised on Friday to avoid sailing through the Red Sea and the Gulf of Aden, according to a document from the Department for Transport. The Greek shipping association has urged shipowners to provide details of vessels sailing through the strait. 'Any closure of the strait of Hormuz would see services rerouted, with increased reliance on Indian west coast ports for connecting the Far East to the Indian subcontinent,' said Peter Sand of the shipping analytics company Xeneta. 'The inevitable disruption and port congestion, as well as the potential for higher oil prices, would cause a spike in ocean freight container shipping rates.' A large-scale return of container ships to the Red Sea now 'seems less likely', according to Sand. Attacks on vessels by Iran-backed Houthi rebels in Yemen 18 months ago led to many ships being diverted around the Cape of Good Hope, a rocky headland on the Atlantic coast of the Cape Peninsula in South Africa, adding thousands of miles to journeys and pushing up shipping rates. Energean, a UK gas producer, said on Friday it had temporarily suspended the production and activities of its facility off the coast of northern Israel. Energean told investors it had received a notice from Israel's ministry of energy and infrastructure ordering the suspension 'following the recent geopolitical escalation in the region'. 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
