2025-08-05 10:30
MUMBAI, Aug 5 (Reuters) - The Indian rupee extended its decline on Tuesday on the back of escalating trade tensions with the United States, although likely central bank intervention prevented the currency from breaching record low levels. The rupee closed at 87.8000 to the U.S. dollar, down 0.2% from Monday's close of 87.6550. The local currency fell to a low of 87.8850 on Tuesday, just shy of an all-time low of 87.95 hit in February. Sign up here. The Reserve Bank of India helped absorb some tariff-related pressure on the rupee through interventions conducted by state-run banks, a trader at a state-owned lender said. U.S. President Donald Trump on Monday again threatened to substantially raise tariffs on Indian goods, citing the country's continued purchases and resale of Russian oil, after announcing a surprise 25% tariff on Indian imports last week. In response, India's foreign ministry said it would take "all necessary steps" to protect national interests and economic security, escalating a trade row between the two countries. "As fears of more expensive crude oil loom, the Indian rupee stands at a crossroads amid rising geopolitical tensions," said Abhishek Goenka, chief executive of IFA Global. Traders and analysts said that persistent foreign outflows may accelerate, putting further strain on the rupee if talks stall. The RBI's interest rate decision on Wednesday could also influence the currency's trajectory. Meanwhile, Asian currencies traded mixed as the dollar recouped some of its losses on Tuesday. The Philippine peso dropped 0.6% after inflation hit the lowest in nearly six years. The Malaysian ringgit gained more than 0.2%, while the Indonesian rupiah was little changed. The dollar index was down 0.3% at 98.967, as of 1007 GMT. https://www.reuters.com/world/india/rbi-intervention-shields-rupee-record-low-after-trump-tariff-threat-2025-08-05/
2025-08-05 10:23
Small-cap firms add ether to treasuries, drawn by staking yields At least $3.5 billion worth of ether held by companies Ether seen as middle ground between bitcoin and riskier tokens Regulatory gray areas, volatility still limit broader adoption Aug 5 (Reuters) - Some companies are favoring ether over bitcoin as an inflation hedge as the cryptocurrency hits a sweet spot between affordability and credibility, while being underpinned by a strong blockchain backbone. Corporate treasuries held at least 966,304 ether tokens on their balance sheets at the end of July, worth nearly $3.5 billion, according to a Reuters analysis of regulatory filings and disclosures. That compares with just under 116,000 at the end of 2024. Sign up here. The second-largest cryptocurrency has become the token of choice for those looking for more active returns. Unlike bitcoin, which solely relies on price appreciation, ether can be used in staking, a practice where holders lock up their tokens to support the ethereum network in exchange for rewards. Staking can offer yields of about 3% to 4%. "Ether balances growth potential with the legitimacy of a blue-chip asset. It is large enough to be institutional-grade, yet early enough in adoption to benefit from future upside," said Sam Tabar, CEO of Bit Digital (BTBT.O) , opens new tab, which has ether on its balance sheet. The cryptocurrency also powers the ethereum blockchain, which supports a wide range of applications including lending platforms, trading protocols and stablecoins, making it a core component of the crypto financial system. "Holding ether is more like owning oil, whereas bitcoin is more one-dimensional, like gold. Ether is the foundation of decentralized finance, not just a pure store of value," said Anthony Georgiades, general partner at VC firm Innovating Capital. Still, challenges such as regulatory uncertainty and price volatility, which affect the assets' fair value, continue to hinder adoption. CAUTION AMID HYPE After disclosing plans to accumulate ether earlier this year, shares of Peter Thiel-backed BitMine and gaming media network GameSquare (GAME.O) , opens new tab jumped as much as 3,679% and 123%, respectively, underscoring how eager investors are to chase crypto-linked momentum. But analysts have cautioned against unfettered optimism. "The share price response has the hallmarks of the meme craze," said Dan Coatsworth, investment analyst at AJ Bell. The inherent volatility of crypto tokens also makes it a poor fit for boards with a low risk appetite, which could curb ether's appeal beyond core industry players. "Most CFOs would not swap liquid cash for ether. It remains a niche tool best left to 'tech-forward' treasuries that can tolerate swings and complexity," said Anuj Karnik, founder and managing director at Straitsberg, a Singapore-based treasury advisory firm. "Treasury best-practice values liquidity, predictability and regulatory certainty above all. Most corporate leaders view crypto holdings today as experimental 'alternative' allocations, not mainstream policy." Also, while the Securities and Exchange Commission has softened its stance on staking activities, the regulatory framework around the practice is still evolving. Key questions include whether rewards should be taxed as income, how to treat locked tokens on balance sheets and whether offering staking services could trigger custodial obligations. "Every staking reward could be landing in a compliance gray zone," said Michael Ashley Schulman, partner and chief investment officer at Running Point Capital Advisors. Still, despite the risks, some companies continue to double down, raising capital through share sales or debt offerings to fund their ether purchases. BitMine sold a $182 million stake to Cathie Wood's ARK Invest in July. GameSquare CEO Justin Kenna also told Reuters his company might sell stock to invest in ether. "We're not in the business of being overly dilutive. But we'll continue to be opportunistic," Kenna said. https://www.reuters.com/business/small-public-companies-snap-up-ether-new-crypto-gold-rush-even-risks-linger-2025-08-05/
2025-08-05 09:56
MOSCOW, Aug 5 (Reuters) - Russia will continue to support the rouble with net sales of foreign currency, according to new figures from the Finance Ministry released on Tuesday, ahead of U.S. President Donald Trump's deadline to show progress towards peace in Ukraine. The Finance Ministry said it will cut its foreign currency sales from its rainy day National Wealth Fund to 0.3 billion roubles ($3.75 million) a day from August 7 to September 4, down from 0.82 billion roubles previously. Sign up here. The measure will reduce the state's overall daily net forex sales, which combine forex operations by the ministry and the central bank, by 5% to 9.24 billion roubles a day from August 7. Under a complex set of foreign currency operations, the central bank buys and sells forex to ensure a steady supply on the domestic market and also on behalf of the finance ministry, which runs the National Wealth Fund. The ministry said it will sell 6.2 billion roubles of foreign currency during this period, compared with 18.77 billion roubles previously. Trump has said that from August 8 he will impose new sanctions on Russia as well as on countries that buy its energy exports, unless Moscow takes steps to end its 3-1/2 year war with Ukraine. The rouble weakened initially in response to Trump's threats but has since rebounded. The rouble traded 0.2% weaker at 79.95 to the U.S. dollar at 0930 GMT on Tuesday. ($1 = 79.9000 roubles) https://www.reuters.com/markets/europe/russia-will-still-prop-up-rouble-august-trump-deadline-looms-2025-08-05/
2025-08-05 09:41
(Reuters) - Sterling edged higher against the dollar and fell versus the euro on Tuesday, as traders expect the Bank of England to maintain its rate guidance at this week’s policy meeting. The BoE is widely expected to cut its key interest rate to 4% from 4.25% on Thursday and to lower it once more before the end of the year, despite consumer price inflation rising to close to double the central bank's 2% target in June. Sign up here. Traders priced in over a 90% chance of an easing move this week and 86 bps of rate cuts by December 2026. The pound was up 0.05% at $1.3290 against the dollar . The greenback rose against the euro and the yen, but remained within striking distance of Friday’s lows. “Given the stagflationary character of the data, we expect ‘gradual and careful’ to stay as the main forward guidance, with a highly uncertain vote split,” said Citi. “We expect this situation to remain until the autumn budget, after which contractionary tax increases, in our base case, should pave the way for sequential rate cuts.” Britain borrowed more than expected in June, adding to speculation about the need for new tax hikes by finance minister Rachel Reeves later this year. “We suspect that it (the BoE) will (maintain its gradual and careful rate guidance), although any change here would almost certainly be greeted by a bout of pound weakness,” said Enrique Diaz-Alvarez, chief economist at Ebury. The British currency was last up 0.3% at 86.85 pence per euro. It fell to 87.69 pence last week, its weakest against the single currency since May 2023. Yields on UK gilts snapped a 5-day losing streak on Tuesday, with the 10-year up 2.5 bps at 4.53%. “Risks are two-sided: a faster or more pronounced loosening of the labour market could warrant cumulative or larger cuts, whereas sticky underlying (services) inflation and only gradual signs of labour-market slack could extend the pause between cuts beyond current expectations,” said Nikolay Markov economist at Pictet Asset Management. https://www.reuters.com/world/uk/sterling-firms-against-dollar-markets-look-boe-rate-guidance-2025-08-05/
2025-08-05 07:54
MUMBAI, Aug 5 (Reuters) - The Indian rupee weakened on Tuesday as U.S.-India trade tensions escalated, though likely central bank intervention helped avert a slide to a record low. The currency was at 87.8275 to the U.S. dollar at 1:15 p.m. IST, weaker than Monday's close of 87.6550. It earlier fell to 87.8850, near the February record low of 87.95. Sign up here. The rupee opened at 87.85 per dollar on possible central bank intervention, with traders saying the RBI sold dollars through state-run banks ahead of market open to help prevent a breach of the 88 level. "The central bank has absorbed the tariff-related impact and prevented the big figure to change for now," a currency trader with a private bank said. U.S. President Donald Trump again threatened to substantially raise tariffs on Indian goods, citing India's continued purchases and resale of Russian oil. India's foreign ministry vowed to take "all necessary steps" to protect national interests and economic security, fuelling fears of an escalating trade row after U.S. President Donald Trump imposed surprise 25% tariffs on Indian imports last week. Traders warned that persistent foreign outflows from Indian equities may accelerate if talks stall, further pressuring the local currency. President tariff threats on India, outflows from domestic equity markets, panic buying by importers and dollar index unable to find a clear direction are adding to pressure on the rupee, said Kunal Sodhani, vice president at Shinhan Bank India. "For USD/INR, breaking the onshore all-time highs of 87.95 will open doors to uncharted territory and may let the pair test 88.50 levels, while any close below 87.60 may bring consolidation back to the pair." https://www.reuters.com/world/india/indian-rupee-down-likely-saved-all-time-low-by-rbi-intervention-2025-08-05/
2025-08-05 07:51
Aug 5 (Reuters) - Canadian miner First Quantum Minerals (FM.TO) , opens new tab signed a $1 billion gold streaming agreement with a subsidiary of its peer Royal Gold (RGLD.O) , opens new tab, the two companies said in a statement on Tuesday. Gold streaming is a financing mechanism in which a buyer makes an upfront payment to a miner in exchange for purchasing future production from the miner, usually at a predetermined price. Sign up here. Under the deal, First Quantum will receive $1 billion upfront from Royal Gold AG in exchange for gold deliveries referenced to copper production from First Quantum's Kansanshi mine in Zambia. The agreement is expected to close on Wednesday. First Quantum will initially receive 20% of the spot gold price for each ounce delivered, rising to 35% if certain credit or leverage targets are met. Royal Gold said the agreement gives it immediate cash flow from a long-life, large-scale asset. The company expects to receive about 12,500 ounces of gold from the stream this year and an average of 35,000 to 40,000 ounces annually over the next ten years. https://www.reuters.com/markets/commodities/canadas-first-quantum-strikes-1-billion-gold-streaming-deal-with-royal-gold-2025-08-05/
