2025-08-13 05:24

Dollar falls as markets ramp up Fed cut bets US inflation data in line with expectations Trump weighing lawsuit against Powell over renovations SINGAPORE, Aug 13 (Reuters) - The dollar weakened on Wednesday after a tame reading on U.S. inflation bolstered expectations of a Federal Reserve rate cut next month, with President Donald Trump's attempts to extend his grip over U.S. institutions also undermining the currency. U.S. consumer prices increased marginally in July, data showed on Tuesday, in line with forecasts and as the pass-through from Trump's sweeping tariffs to goods prices has so far been limited. Sign up here. Investors eyeing imminent Fed cuts cheered the data and moved to price in a 98% chance the central bank would ease rates next month, which in turn dragged on the dollar. The euro was last up 0.1% to $1.1684, having risen 0.5% in the previous session. Against the yen, the dollar edged 0.07% higher to 147.95 . The dollar index dipped to 98.02, extending its 0.5% fall on Tuesday. "The July CPI report showed less evidence of tariff pass-through to consumer prices ... (but) I think a September rate cut is less than certain, probably not as certain as current market pricing," said Carol Kong, a currency strategist at Commonwealth Bank of Australia. "As the last payroll shows, one report can be sufficient to move the policy debate to one side or another. So I think we still have to wait (for) the remaining data to print before making a strong case about a rate cut or an on hold decision." U.S. Treasury yields similarly fell on the heightened rate cut expectations, with the two-year yield last at 3.7348%, having swung in a range of nearly 10 basis points on Tuesday. The benchmark 10-year yield eased about 1 basis point to 4.2829%. Also eroding investor confidence in the dollar were fresh attempts by Trump to undermine Fed independence, after White House spokeswoman Karoline Leavitt said on Tuesday that the U.S. president was considering a lawsuit against Fed Chair Jerome Powell in relation to his management of renovations at the central bank's Washington headquarters. Trump has been at loggerheads with Powell and has repeatedly lambasted the Fed chair for not easing rates sooner. The president also hit out at Goldman Sachs (GS.N) , opens new tab CEO David Solomon, saying the bank had been wrong to predict U.S. tariffs would hurt the economy. Trump questioned whether Solomon should lead the Wall Street institution. Elsewhere, sterling gained 0.03% to $1.3505. Britain's jobs market weakened again though wage growth stayed strong, according to data on Tuesday, underscoring why the Bank of England is so cautious about cutting interest rates. The Australian dollar was up 0.03% to $0.6531, while the New Zealand dollar gained 0.05% to $0.5957. The Reserve Bank of Australia on Tuesday cut interest rates as expected, and signalled further policy easing might be needed to meet its inflation and employment goals as the economy lost some momentum. In cryptocurrencies, bitcoin halted its rally towards a fresh record and last traded 0.7% lower at $119,337.25, while ether scaled a nearly four-year high of $4,679.47. "Ethereum's quiet breakout is being fueled by real-world adoption and capital confidence," said Gracie Lin, Singapore CEO of crypto exchange OKX. "On our platform, ETH has now overtaken BTC as the most traded asset over the past month." https://www.reuters.com/world/middle-east/dollar-eases-investors-eye-september-fed-cut-2025-08-13/

2025-08-13 05:00

Aug 13 (Reuters) - A small fire ignited by debris from a destroyed drone was promptly doused at the Slavyansk oil refinery in Russia's region of Krasnodar, authorities said on Wednesday. Russia's air defence units destroyed 46 Ukrainian drones overnight, the defence ministry said on Telegram, including five over the Krasnodar region. The ministry reports only drones downed, not the number launched by Ukraine. Sign up here. "There are no casualties reported," the administration said on the Telegram messaging app. "The fire was promptly extinguished. Emergency and special services are working at the scene." A car caught fire at the refinery, the regional administration added in its post. Reuters was not able to independently verify the reports. There was no immediate comment from Ukraine, which says its strikes inside Russia aim to destroy infrastructure key to Moscow's war efforts, including energy facilities. The Slavyansk refinery is a private plant with a capacity of around 100,000 barrels per day, supplying fuel for both domestic use and export. The overnight Ukrainian drone attack also targeted Russia's southern region of Volgograd, the regional governor said. Drone debris fell on a 16-story residential building in the city of Volgograd, forcing residents to leave their homes, the governor, Andrei Bocharov, said on Telegram. The city of Volgograd is the administrative centre of the broader region of the same name. The Russian defence ministry said its units destroyed 11 drones overnight over Volgograd. https://www.reuters.com/world/europe/drone-debris-sparks-small-fire-russian-refinery-authorities-say-2025-08-13/

2025-08-13 04:38

TOKYO, Aug 13 (Reuters) - A look at the day ahead in European and global markets from Rocky Swift Record highs are popping up on stock markets all over the world, from Wall Street to Japan and Vietnam, and equity indexes across Asia are a sea of green. Sign up here. Data in the United States and other major markets are falling into a Goldilocks zone of not-too-hot inflation that allows central banks to keep the easy money flowing. The MSCI All Country World Index (.MIWD00000PUS) , opens new tab of shares reached a new all-time high, as did Japan's Nikkei (.N225) , opens new tab gauge, which smashed through the 43,000 level for the first time. Bitcoin's cryptocurrency rival ether jumped to a near four-year high. Traders are pricing in a 94% chance the Federal Reserve will cut its key interest rate in September, up from nearly 86% a day ago and about 57% a month earlier, according to the CME FedWatch tool. The central bank in Australia cut rates yesterday and New Zealand's is expected to follow suit next week. The Bank of Japan's long-anticipated rate hike keeps getting kicked down the road. A Reuters poll that tracks the BOJ's quarterly tankan business survey showed Japanese manufacturers' sentiment index improved for a second-straight month, while another report showed the nation's wholesale inflation slowed in July. Left in the cold is the dollar, still the biggest loser since U.S. President Donald Trump began his on-again, off-again tariff saga in April. A new problem for the greenback is concern that partisanship will creep into U.S. monetary policy and the sanctity of economic data. Trump has nominated White House adviser Stephen Miran to temporarily fill a vacant board seat at the Fed. And the White House said it was "the plan" that the Bureau of Labor Statistics would continue to publish its closely watched monthly employment report after Trump's pick to head the agency, E.J. Antoni, previously proposed suspending its release. It's a light calendar for data and earnings in Europe and the U.S., and equity futures are pointing another day of gains in both markets. Meanwhile, small bands of Russian soldiers thrust deeper into eastern Ukraine, with Trump planning to meet Russian President Vladimir Putin in Alaska on Friday in search of an end to the war. European leaders fear the summit could result in peace terms imposed on an unlawfully shrunken Ukraine. Key developments that could influence markets on Wednesday: - Germany final consumer price index (CPI) data for July - United Kingdom RICS Housing Survey for July https://www.reuters.com/world/china/global-markets-view-europe-2025-08-13/

2025-08-13 04:22

SINGAPORE, Aug 13 (Reuters) - Oil prices were steady on Wednesday as investors awaited clearer indications of U.S. inventory data, while eyeing an upcoming meeting between U.S. President Donald Trump and Russian President Vladimir Putin. Brent crude futures were flat at $66.12 a barrel at 0330 GMT, while U.S. West Texas Intermediate crude futures dipped 6 cents to $63.11. Both contracts settled lower on Tuesday. Sign up here. Trump and Putin are due to meet in Alaska on Friday to discuss ending Russia's war in Ukraine that has shaken oil markets since February 2022. Oil investors are in a "wait-and-see mode" ahead of the meeting, said ING commodity strategists. "The outcome could remove some of the sanction risk hanging over the market," the ING strategists added. Investors also awaited further cues after an industry report showed U.S. crude stockpiles climbed last week. Crude inventories in the U.S., the world's biggest oil consumer, rose by 1.52 million barrels last week, market sources said, citing American Petroleum Institute figures on Tuesday. Gasoline inventories dropped while distillate inventories gained slightly. Should the U.S. Energy Information Administration data set for release later on Wednesday also show a decline, it could indicate that consumption during the summer driving season has peaked and refiners are easing back their runs. The demand season typically runs from the Memorial Day holiday at the end of May to the Labor Day holiday in early September. Analysts polled by Reuters expect the EIA report to show crude inventories fell by about 300,000 barrels last week. Outlooks issued by OPEC and the EIA on Tuesday pointed to increased production this year which also weighed on prices. But both expect output in the U.S., the world's largest producer, to decline in 2026 while other regions will increase oil and natural gas production. U.S. crude production will hit a record 13.41 million barrels per day in 2025 due to increases in well productivity, though lower oil prices will prompt output to fall in 2026, the EIA forecast in a monthly report. The Organization of the Petroleum Exporting Countries' monthly report said global oil demand will rise by 1.38 million bpd in 2026, up 100,000 bpd from the previous forecast. Its 2025 projection was left unchanged. The White House on Tuesday tempered the expectations for a quick Russia-Ukraine ceasefire deal, which may lead investors to reconsider an end to the war soon and any easing of sanctions on Russian supply, which had been supporting prices. "Trump downplayed expectations of his meeting with President Putin ... However, expectations of additional sanctions on Russian crude continue to fall," ANZ senior commodity strategist Daniel Hynes wrote in a note. https://www.reuters.com/business/energy/oil-stable-market-waits-inventory-data-us-russia-meeting-2025-08-13/

2025-08-13 03:13

MUMBAI, Aug 13 (Reuters) - The Indian rupee is poised to open higher on Wednesday after the July U.S. inflation data indicated limited impact of tariffs, providing room for the Federal Reserve to cut rates next month. The 1-month non-deliverable forward indicated the rupee will open in the 87.58-87.62 range versus the U.S. dollar, compared with Tuesday's close of 87.7125. Sign up here. The rupee may get "only modest relief" from the boost in Fed rate cut expectations, a currency trader at a Mumbai-based bank said. Uncertainty over U.S. tariffs remains the dominant drag on sentiment, he noted, adding that the upcoming Trump-Putin summit is a key risk event that could sway the currency’s direction. U.S. President Donald Trump and his Russian counterpart Vladimir Putin will meet this Friday in Alaska to hold discussions on halting the war in Ukraine. The upcoming Putin-Trump meeting takes on added significance for the rupee amid the recent escalation in U.S. tariffs on India over its purchase of Russian oil. The outcome could shape expectations on whether trade tensions will ease or deepen. Any sign of a thaw between Washington and Moscow could open the door for tariff relief, offering the rupee breathing space, traders said. DOLLAR, U.S. YIELDS DROP The dollar index dropped on Tuesday and near maturity U.S. yields declined after the highly-anticipated U.S. July inflation reading indicated Trump's tariff regime had yet to filter down to consumer prices. "Inflation was broadly in line with expectations," ING Bank said in a note. "Tariffs continue to be largely absorbed within U.S. corporate profit margins. This gives the Fed the room to respond to the weaker jobs backdrop and cut interest rates from September." The already-high odds of a September rate cut have climbed to 94%, with investors now pricing in about 60 basis points of total cuts for the year. KEY INDICATORS: ** One-month non-deliverable rupee forward at 87.71; onshore one-month forward premium at 11.25 paise ** Dollar index down at 98.02 ** Brent crude futures down 0.1% at $66 per barrel ** Ten-year U.S. note yield at 4.29% ** As per NSDL data, foreign investors sold a net $110.1mln worth of Indian shares on Aug. 11 ** NSDL data shows foreign investors sold a net $15.1mln worth of Indian bonds on Aug. 11 https://www.reuters.com/world/india/tariff-bite-missing-us-inflation-rupee-rise-fed-cut-hopes-2025-08-13/

2025-08-13 01:57

SINGAPORE, Aug 13 (Reuters) - Singapore-based fintech firm OpenEden said on Wednesday it has appointed U.S. financial firm BNY (BK.N) , opens new tab as the investment manager and primary custodian for assets backing its tokenised U.S. Treasury fund. The fund, launched in 2023, provides investors with direct exposure to a pool of short-dated U.S. Treasury bills and overnight reverse repurchase agreements through the minting of Treasury bill tokens. It has nearly $300 million of assets under management. Sign up here. Doni Shamsuddin, head of Asia Pacific at BNY Investments, said this arrangement is the first time BNY is offering both investments and custody services to tokenised funds. BNY, or the Bank of New York Mellon Corporation, will manage the fund and invest in Treasury bills, money market funds and similar assets that will back the tokens issued by OpenEden. The move comes at a time of rising demand for tokenised money market funds and as big U.S. banks debate expanding into cryptocurrencies following strong endorsements from regulators. Tokenisation generally refers to the process of turning financial assets such as bank deposits, stocks, bonds, funds and even real estate into cryptocurrency assets listed on the blockchain. https://www.reuters.com/sustainability/boards-policy-regulation/bny-appointed-investment-manager-openedens-tokenised-us-treasury-fund-2025-08-13/