2025-07-28 19:38

Euro down against most peers after initial, knee-jerk rise Fed, Bank of Japan expected to hold rates steady this week China and US negotiating ahead of August 12 deadline NEW YORK/LONDON, July 28 (Reuters) - The dollar rose against the euro and yen on Monday as markets were buoyed by a trade agreement between the U.S. and the EU, which brought some market certainty and averted a global trade war. U.S. President Donald Trump and European Commission President Ursula von der Leyen reached a framework trade agreement on Sunday, which provides for an import tariff of 15% on EU goods, half the rate Trump had threatened from August 1. Sign up here. That follows last week's U.S. agreement with Japan, while top U.S. and Chinese economic officials resumed talks in Stockholm on Monday, aiming to extend a truce by three months and keep sharply higher tariffs at bay. "If you rewind back to early April or Liberation Day, the overarching theme has been selling US assets because of uncertainties due to the new trade regime," said Eugene Epstein, head of structuring for North America at Moneycorp in New Jersey. "I would argue that what you're seeing is some resemblance of return to normalcy." The dollar rose against the safe-haven Swiss franc , up 1% at 0.80325 francs. It rose against the Japanese yen , up 0.59% at 148.535. The euro was last down 1.25% at $1.159125 , set for its biggest daily loss since mid-May, reversing an initial knee-jerk rise in Asia trade as investors' focus shifted to what an easing in global trade tensions meant for the dollar overall. The dollar tumbled sharply earlier this year, particularly against the euro, as fears that dramatically higher tariffs on trade with most of its major partners would hurt the U.S. economy caused investors to consider shifting out of U.S. assets. U.S. stocks were mostly lower but still trading near record highs. The Dow Jones Industrial Average (.DJI) , opens new tab fell 0.3%, the S&P 500 (.SPX) , opens new tab dipped 0.15% and the Nasdaq Composite (.IXIC) , opens new tab rose 0.14%. Normally, the gap between yields on government bonds is a major factor for currency moves, but at present, the euro is significantly higher than the gap between U.S. and euro zone yields would imply. "If you think about what we expected in the beginning of the year, no one really thought that the euro was going to be so strong. We all thought that, especially post Liberation Day, the dollar will remain strong," said Anthi Tsouvali, multi-asset strategist at UBS Wealth. "We continue to see the dollar weakening." The euro fell against the yen and sterling, having hit a one-year high on the Japanese currency and a two-year high on the pound at the start of trade. , The dollar strengthened against the pound, which was 0.67% lower at $1.33545. As concerns subside about the economic fallout from punishing tariffs, investor attention is shifting to corporate earnings and central bank meetings in the United States and Japan in the next few days. Both the Fed and the Bank of Japan are expected to hold rates steady at policy meetings this week, but traders will watch subsequent comments to gauge the timing of the next moves. Investors will also be watching to see Trump's reaction to the Fed's decision. The 2-year note yield, which typically moves in step with interest rate expectations for the Federal Reserve, rose 1.5 basis points to 3.932%, from 3.917% late on Friday. Trump has been putting the Fed under heavy pressure to make significant rate cuts, and Trump appeared close to trying to fire Powell last week, but backed off with a nod to the market disruption that would likely follow. In cryptocurrencies, bitcoin fell 0.52% to $118,205.38. Ethereum declined 0.61% to $3,800.90. https://www.reuters.com/world/middle-east/dollar-rises-against-major-peers-after-us-eu-trade-pact-2025-07-28/

2025-07-28 19:37

SINGAPORE, July 26 (Reuters) - (This July 26 story has been corrected to say that PTTEP acquired 50% interest in Block A-18, not full ownership of the block, after it signed a deal to buy 100% of Hess International Oil Corp, in the headline and paragraph 1) Thai oil and gas giant PTT Exploration and Production (PTTEP) (PTTEP.BK) , opens new tab has acquired 50% of Block A-18 in the Malaysia–Thailand Joint Development Area (MTJDA) in a $450 million transaction with Chevron (CVX.N) , opens new tab units. Sign up here. PTTEP said in a statement late on Friday it signed the deal with Hess (Bahamas) and Hess Asia Holdings, both now owned by Chevron following a recent merger with Hess Corp (HES.MX) , opens new tab. The acquisition gives PTTEP 100% of the outstanding shares in Hess International Oil Corp, which holds a 50% participating interest in Block A-18, PTTEP said. The deal comes as Chevron restructures globally to streamline operations and reduce costs, a process that could see it lay off up to 20% of its workforce by the end of next year. Chevron is also seeking buyers for its 50% stake in its Singapore refinery, Reuters reported in June. PTTEP said natural gas from Block A-18 is fundamental to power generation for southern Thailand. The block produces about 600 million standard cubic feet of gas per day, which is equally distributed to Thailand and Malaysia. "PTTEP is pleased to further expand our operations in the MTJDA, which is recognized for its petroleum potential and strategic significance to Thailand's energy security," Chief Executive Officer Montri Rawanchaikul said in the statement. The MTJDA covers 7,250 sq km (2,800 sq miles) in the southern part of the Gulf of Thailand and is a key source of natural gas and condensate for Thailand and Malaysia, according to the statement. https://www.reuters.com/business/energy/thailands-pttep-buys-50-offshore-gas-block-chevron-450-million-2025-07-28/

2025-07-28 19:34

CAIRO/ATHENS, July 28 (Reuters) - Yemen's Iran-aligned Houthis said on Monday they had rescued 10 seafarers from the Greek-operated cargo ship Eternity C which they attacked and sank in the Red Sea earlier this month. The Liberia-flagged Eternity C was the second ship to sink off Yemen this month after repeated attacks by Houthi militants with sea drones and rocket-propelled grenades. Another Greek-operated vessel, the Magic Seas, had gone down days earlier. Sign up here. The strikes on the two vessels marked a revival of attacks on shipping by the Houthis, who have hit more than 100 ships between November 2023 and December 2024 in what they say is a show of solidarity with the Palestinians in the war in Gaza. The Eternity C crew and three armed guards were forced to abandon the ship following the attacks. Ten people were rescued by a privately led mission, while five more are feared dead mainly due to the attacks. Another 10 people were believed to be held by Houthis, maritime security sources had told Reuters. On Monday, the Houthis group released a six-minute video showing pictures of the 10 seafarers with some of them contacting their families. They also showed testimonies saying that the crew members were not aware of a maritime ban by Houthis against vessels sailing to Israeli ports. They said the vessel was heading to Israel's Eilat Port to load fertilizers. Reuters could not independently verify the footage. In what they called phase four of their military operations, the Houthis said on Sunday they would target any ships belonging to companies that do business with Israeli ports, regardless of their nationalities. Following the recent attacks, Greece said it would deploy a salvage vessel in the Red Sea to assist in maritime accidents and protect seafarers and global shipping. https://www.reuters.com/world/europe/houthis-say-they-hold-10-crew-greek-operated-ship-they-sank-off-yemen-2025-07-28/

2025-07-28 17:53

MEXICO CITY, July 28 (Reuters) - Mexican state energy company Pemex on Monday reported a net profit of 59.52 billion pesos ($3.17 billion) for the second quarter of this year, helped largely by a more favorable exchange rate. Like most of its Latin American peers, Pemex is essentially a dollar-denominated state company, including for the vast majority of its spending and revenue. Sign up here. In the second quarter of last year, Pemex made a net loss of 273.33 billion pesos after the Mexican peso lost value against the dollar. The company also reported a 43.3 billion peso net loss in the first quarter of this year. In a stock exchange filing, Pemex also reported that revenues fell 4.4% during the second quarter of this year to 391.62 billion pesos, which it attributed to lower crude oil sales and lower prices for petroleum products like gasoline and diesel. Earnings before interest, taxes, depreciation and amortization (EBITDA) were 76 billion pesos for the quarter. The world's most indebted energy company, Pemex reported a financial debt of $98.8 billion at the end of the quarter and that it owes providers $22.79 billion. One of Mexico's largest companies and contributors to state coffers, Pemex received 94 billion pesos in government support and paid providers more than 230 billion pesos. Crude oil and condensate production with partners for the quarter averaged 1.64 million barrels per day while natural gas production averaged 3.59 billion cubic feet per day. Company executives told investors in a call after the quarterly results were published that Pemex was still seeking to increase crude oil production to the government goal of 1.8 million barrels per day. To do so, the company would rely on so-called mixed contracts that would be offered to private companies, as well as on continued government support, the executives said. In recent years, production has declined rapidly, especially in the Gulf of Mexico. ($1 = 18.7654 Mexican pesos at end-June) https://www.reuters.com/business/energy/mexicos-pemex-swings-net-profit-helped-by-peso-recovery-2025-07-28/

2025-07-28 13:44

WASHINGTON, July 28 (Reuters) - U.S. President Donald Trump on Monday again called on the Federal Reserve to cut interest rates, saying it would help propel the U.S. economy. "I think he has to," Trump, speaking alongside British Prime Minister Keir Starmer following their meeting in Scotland, said of Federal Reserve Chair Jerome Powell on benchmark rates. Sign up here. https://www.reuters.com/world/us/trump-reiterates-call-fed-cut-rates-2025-07-28/

2025-07-28 13:17

LONDON/PARIS, July 28 (Reuters) - A rouble-backed stablecoin that could help Russia circumvent Western restrictions on payments has seen a jump in transaction volumes in July, with funds moved through the coin surging past $40 billion in total, blockchain research firm Elliptic said on Monday. Sweeping Western sanctions since Russia's February 2022 full-scale invasion of Ukraine, particularly the exclusion of Russian banks from the SWIFT global financial messaging system, have sorely hampered Moscow's trading options and left Russia seeking alternative routes for cross-border payments. Sign up here. Russian defence sector lender Promsvyazbank and payments firm A7, both of which are under Western sanctions, announced the launch of the new Kyrgyzstan-based stablecoin A7A5 in January, promoting its potential as a tool for foreign trade. Elliptic, whose data and intelligence was used by the U.S. Secret Service in taking down the online infrastructure used by Russian cryptocurrency exchange Garantex in March, said in a report that A7A5 was becoming increasingly effective in helping Russian businesses and individuals avoid sanctions by bypassing the traditional financial system. TRM Labs, another blockchain research firm, has identified A7A5 as being part of a new nexus of Kyrgyzstan-registered entities with cryptocurrency connections to sanctions evasion that is also likely tied to the import of dual-use goods from China to Russia through Central Asia. A7A5, Promsvyazbank and A7 did not immediately respond to requests for comment. VOLUME SPIKE Promsvyazbank, when launching A7 in late 2024, said the platform would help Russian companies make smooth cross-border settlements and said firms could pay for services and supplies in China without using SWIFT. A stablecoin, A7A5 enables cross-border payments that most Russian banks cannot offer. Reuters could not independently determine the source of funds in A7A5 or the reasons for the transfers. Elliptic's analysis showed that over $1 billion was now being transferred through A7A5 each day, with an aggregate value to date of $41.2 billion, noting a spike in volumes, liquidity and tokens in circulation in July. TRM Labs observed a similar aggregate volume. Surging A7A5 demand has seen the stablecoin's market capitalisation triple to $521 million in less than two weeks, Elliptic said. A7A5 on Monday wrote on Telegram that it had injected $100 million of fresh liquidity in the stablecoin Tether (USDT) into the A7A5 DEX, a decentralised exchange. "Demand for A7A5 to USDT at the best rates remains high, liquidity is gone in minutes," A7A5 said. Tether, which regularly works with global law enforcement in helping to seize illicit funds across various jurisdictions, did not immediately respond to a request for comment. https://www.reuters.com/business/finance/transfers-with-rouble-backed-crypto-coin-pass-40-billion-after-july-spike-2025-07-28/