2025-07-02 03:05

MUMBAI, July 2 (Reuters) - The Indian rupee is expected to open lower on Wednesday, tracking declines in most other Asian currencies and equities amid renewed worries over U.S. President Donald Trump's tariffs. The 1-month non-deliverable forward indicated a open in the 85.62-85.64 range, versus 85.52 on Tuesday. The rupee has been largely range bound in recent sessions, holding between the key support zone at 85.90–86.00 and resistance near 85.30. Sign up here. "Both of these levels are difficult to break," a currency trader at a bank said. "You'll likely have to wait until July 9 for a decisive move, and that's when we could see a breakout either way." He added for now the risks are skewed toward a decline past 86 rather than a rally above 85.30. ASIA STRUGGLES Trump ruled out extending the July 9 deadline for trade deals on Tuesday and said he remained doubtful about reaching a deal with Japan. Japanese shares dropped 1% and the yen weakened versus the dollar. The renewed trade worries put pressure on risk-sensitive currencies, while dampening appetite for riskier assets. Asian equities and currencies declined amid wariness over potential U.S. action after the deadline. The Korean won, the Malaysian ringgit and the Thai baht were all down by 0.3% and the offshore Chinese weakened past 7.1650 to the U.S. dollar. Meanwhile, in a development seen as mildly negative for the dollar, U.S. Federal Reserve Chair Jerome Powell said he did not rule out the possibility of cutting interest rates at the Fed's July 29–30 meeting, while reiterating that the central bank will wait for more economic data before deciding on rate cuts. Traders have slightly increased the odds of a cut at that gathering. Investors assess Trump's massive tax-and-spending bill, which was passed by the U.S. Senate and will return to the House for final approval. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.75; onshore one-month forward premium at 10.50 paise ** Dollar index at 96.66 ** Brent crude futures up 0.1% at $67.2 per barrel ** Ten-year U.S. note yield at 4.25% ** As per NSDL data, foreign investors bought a net $97 million worth of Indian shares on June 30 ** NSDL data shows foreign investors bought a net $181.2 million worth of Indian bonds on June 30 https://www.reuters.com/world/india/rupee-expected-track-asia-forex-lower-renewed-trump-tariff-worries-2025-07-02/

2025-07-02 02:40

SINGAPORE, July 2 (Reuters) - Australia's BHP Group (BHP.AX) , opens new tab has signed contracts with China's COSCO Shipping for the charter of two ammonia dual-fuelled Newcastlemax bulk carriers, the mining giant said on Wednesday. The two vessels are expected to be delivered from 2028 and will be charted for five years. They will mainly be used to transport iron ore from Western Australia to Northeast Asia. Sign up here. These vessels can reduce greenhouse gas emissions by at least 50 per cent and up to 95 per cent on a per-voyage basis compared to a conventionally-fuelled voyage, if they run on lower or low-to-zero GHG emissions ammonia, according to BHP. The mining giant previously told Reuters that it plans to receive its first ammonia-fuelled bulk carrier from 2026 as part of the company's plans to cut shipping emissions. Ammonia is among several alternative fuels that shippers are exploring to cut carbon emissions, though adoption will take time to scale up. https://www.reuters.com/sustainability/climate-energy/bhp-inks-charter-contracts-with-cosco-ammonia-dual-fuelled-vessels-2025-07-02/

2025-07-02 02:07

July 1 (Reuters) - Del Monte Foods kicked off efforts to pursue a sale as it filed for Chapter 11 bankruptcy proceedings in the United States on Tuesday under an agreement with certain key lenders, the company said in a statement. The company has secured $912.5 million in financing to support itself through the proceedings, it said, adding that it intends to remain open and continue operations throughout the bankruptcy. Sign up here. The 135-year old company hosts names like canned fruits and vegetables brand Del Monte, College Inn, under which it sells broth and stocks, and tea brands like Joyba. It listed estimated assets and liabilities in the range of $1 billion to $10 billion, according to a filing with the New Jersey bankruptcy court, while the number of creditors is estimated between 10,000 and 25,000. "This is a strategic step forward for Del Monte Foods. After a thorough evaluation of all available options, we determined a court-supervised sale process is the most effective way to accelerate our turnaround and create a stronger and enduring Del Monte Foods," CEO Greg Longstreet said. Certain of its non-U.S. subsidiaries are not included in the Chapter 11 proceedings and continue to operate as usual, Del Monte Foods said. https://www.reuters.com/markets/us/del-monte-foods-files-chapter-11-bankruptcy-us-2025-07-02/

2025-07-02 01:33

Rupee volatility has risen under RBI Governor Malhotra Companies have increased currency hedging to minimise risks Hedging of FX risks to help financial stability, former RBI chief says MUMBAI, July 2 (Reuters) - The Reserve Bank of India's increased tolerance for rupee volatility is prompting companies to more actively manage forex risks, enhancing the economy's resilience to global shocks. Since RBI Governor Sanjay Malhotra assumed office in December, the rupee's daily trading ranges have nearly tripled and a key volatility indicator has doubled, reflecting the central bank's reduced intervention in forex markets. Sign up here. The central bank is comfortable allowing the rupee to move in line with Asian peers, stepping in only to curb excessive volatility, said four sources familiar with the central bank's thinking and treasury heads at large banks. The RBI did not immediately respond to an email seeking comment. The central bank's less interventionist stance has effected a notable pick-up in currency hedging by corporates. In turn, this contributes to a more stable financial system, according to former RBI chief Duvvuri Subbarao. In the past six months, the rupee has fluctuated between 83.77 and 87.95 per dollar, prompting companies to ramp up hedging and move away from complex derivatives that carry higher risk in volatile markets. "Overall, appreciation for forex risk and hence hedging is much higher among clients than it was last year," B. Prasanna, treasury head at India's third-largest lender ICICI Bank, said. One-month implied volatility, which hovered below 2% for much of 2024, has more than doubled, reflecting the shift in market dynamics. Data from clearing house CCIL shows companies have responded to a rise in volatility. Between December and May, the total currency hedges taken by exporters and importers via forwards were higher than any six-month rolling period since 2020. "If companies hedge adequately, they are protecting themselves against currency fluctuations and minimising the chances of systemic pressure," said Subbarao, who served as RBI governor from September 2008 to September 2013. This financial stability will have implications for economic growth, he said. Subbarao pointed out that excessive interventions by the central bank could reduce the incentive to hedge, creating a moral hazard as companies outsource risk management to the central bank. He noted that inadequate corporate hedging had exacerbated pressures during the 2008 global financial crisis and the 2013 Federal Reserve "taper tantrum". Small and mid-sized businesses have especially stepped up hedging activity, treasury officials and forex consultants said. These firms try to save costs by avoiding hedging in times when the currency is stable. "RBI's change in approach has prompted an increase in our hedge ratios over the last few months," said Abhijeet Bhushan, treasurer at diamond company Hari Krishna Exports. The Mumbai-based company has annual forex exposure of about $600 million. "With the rupee moving in wider bands and the central bank adopting a less interventionist stance, we can't afford to stay under hedged to the extent we used to." Bhushan said the company is using the rupee's increased two-way swings to hedge opportunistically, at times covering up to 90% of its confirmed exposure. In the past three years, hedging levels would typically not exceed 60–70%. Company executives at half a dozen small businesses Reuters spoke to said that planning for forex risk had become imperative as even small changes in exchange rates could materially affect earnings. A senior executive at a mid-sized auto parts firm said the company had become more active in hedging during periods of rupee depreciation. That was in contrast to last year's approach, when consistent RBI intervention allowed for a more relaxed strategy, the executive, who declined to be identified as they are not authorised to speak to media, said. The executive added that other firms in the industry too had adopted a more hands-on stance toward managing currency risk. Heightened volatility has also lessened demand for exotic derivatives. Abhishek Goenka, CEO at forex advisory IFA Global which advises around 900 clients, said companies had reduced exotic options and were doing less of structures such as forward extras, enhanced collars and target redemption forwards. On hedging, he said that "overall hedge ratios have gone up among importers, whereas exporters have changed the composition of their hedge portfolio." https://www.reuters.com/world/india/indias-new-light-touch-fx-volatility-spurs-hedging-ramp-up-2025-07-02/

2025-07-01 23:35

BENGALURU/SINGAPORE, July 2 (Reuters) - India's renewable power output rose at its fastest pace since 2022 in the first half of 2025, a Reuters analysis of government data showed. Renewable power output jumped 24.4% to 134.43 billion kilowatt hours (kWh) for January–June 2025, according to a Reuters analysis of daily load despatch data from the federal grid regulator. Sign up here. The share of renewables, excluding hydropower, hit a record high of more than 17% in June. Coal-fired generation, still India's dominant electricity source, fell nearly 3% in the first half as overall power output growth slowed to 1.5%. Electricity output grew 5.8% in 2024. A milder summer, due to an earlier-than-expected monsoon, and slowing economic activity have reduced coal demand, resulting in record domestic stockpiles and lower imports by the world's second-largest consumer of the fossil fuel behind China. Renewable generation will continue to grow, with India expected to add 32 gigawatts (GW) of renewable capacity this year, compared with about 28 GW in 2024, said Vikram V, vice president of corporate ratings at Moody's unit ICRA. India has already added 16.3 GW of wind and solar capacity in the five months through May, government data showed. The South Asian nation has accelerated wind and solar additions after a prolonged slowdown that led to it missing its 2022 target of 175 GW. It now aims for 500 GW of non-fossil fuel capacity - including hydro and nuclear - by 2030, nearly double the current 235.6 GW. "We believe this is achievable, but in our base case, the target may shift to 2032," S&P Global Commodity Insights said in a note, adding that grid modernisation and energy storage investments are critical to support renewable integration. https://www.reuters.com/sustainability/boards-policy-regulation/india-renewable-power-output-grows-fastest-pace-three-years-2025-07-01/

2025-07-01 23:32

WASHINGTON, July 1 (Reuters) - U.S. Treasury Secretary Scott Bessent said on Tuesday he believes the Federal Reserve could lower interest rates by September. His comments on the Fox News show "The Ingraham Angle," come as President Donald Trump repeatedly urges the Fed to lower rates from their current 4.25%-4.50% range. Sign up here. "I think that the criteria is that tariffs were not inflationary. If they're going to follow that criteria, I think that they could do it sooner than then, but certainly by September," Bessent said. "I don't agree with their criteria, but if you're following that criteria, sure, why not the fall?" https://www.reuters.com/business/us-treasury-chief-says-he-thinks-fed-could-lower-interest-rates-by-september-2025-07-01/