2025-06-23 10:24

MUMBAI, June 23 (Reuters) - The Indian rupee declined on Monday alongside Asian currencies, as investors turned to safe-havens such as the U.S. dollar amid escalating tensions in the Middle East, although a retreat in crude oil prices helped cushion their losses. Market participants remained focused on Iran's response to U.S. attacks on its nuclear sites. Sign up here. The rupee closed at 86.75 against the U.S. dollar, down 0.2% from its close at 86.5850 in the previous session. Brent crude oil futures hit a five-month peak of $81.40 per barrel earlier in the day but pared gains to be last quoted at $77.4 per barrel. Iran has repeatedly threatened to retaliate after the U.S. struck the county's nuclear sites over the weekend, raising fears that the retaliation may include a closure of the Strait of Hormuz through which roughly a fifth of global crude supply flows. The dollar index was up rose nearly 0.4% to touch a near-two week high of 99.4 while Asian currencies were down between 0.2% and 1.4%. In case the "geopolitical risk and oil spike proves to be only temporary, we think markets will rapidly default back to preferring strategic USD shorts on the back of US-generated bearish drivers," ING Bank said in a note. Global investors treaded with caution on Monday, with most equity gauges in Asia and Europe trading in the red but not suffering steep losses. India's benchmarks, the BSE Sensex (.BSESN) , opens new tab and the Nifty 50 (.NSEI) , opens new tab ended lower by about 0.6% each. U.S. equity futures, meanwhile, nudged higher. The relatively muted reaction in oil prices is a source of comfort for the rupee, a trader at a state-run bank said. However, a fresh round of escalation in the Middle East could push the rupee below the psychologically important 87 level, the trader added. Market participants reckon that the Reserve Bank of India is likely to step in to curb excessive volatility spurred by geopolitical developments. https://www.reuters.com/world/india/rupee-weakens-alongside-asian-peers-oil-pullback-cushions-losses-2025-06-23/

2025-06-23 08:58

TOKYO, June 23 (Reuters) - The Japanese yen, normally one of the most sought after safe havens in times of geopolitical stress, has dropped 2.4% against the U.S. dollar and 1.4% against the Swiss franc since Israel launched missile attacks against Iranian nuclear and military targets on June 13. CONTEXT Japan imports almost all its oil, meaning the spike in crude since the start of the conflict threatens to worsen the country's trade balance, diminishing the yen's appeal. Sign up here. When Russia invaded Ukraine on February 24, 2022, the yen weakened against the dollar on the same day and then lost some 11.5% over March and April. WHY IT'S IMPORTANT Speculative positioning is still heavily skewed towards a stronger yen, potentially foreshadowing a major shift by hedge funds as they cover those positions. The yen exchange rate has a knock-on effect for Japanese stocks as well, with a weaker yen tending to support the market because it increases the value of overseas revenue for the country's heavyweight exporters. However, the effect may be short-lived because of the jump in manufacturing costs from higher energy prices. For Japan's unpopular government too, a weak yen fans inflation when people are already struggling with higher prices, particularly for rice. That's not a good omen ahead of crucial upper house elections next month. KEY QUOTES "A rise in crude oil prices causes a deterioration not only in Japan's trade balance but also its terms of trade, so it fundamentally acts to weaken the yen," Citi analysts wrote in a recent client note, while reiterating forecasts for the yen to weaken to 150 per dollar by September. With the Bank of Japan also striking a dovish posture at last week's policy meeting, the compounded downward pressure on the yen from oil's rally could be amplified, they said. https://www.reuters.com/business/japans-yen-sinks-spike-crude-oil-overpowers-safe-haven-appeal-2025-06-23/

2025-06-23 08:52

LONDON, June 23 (Reuters) - Hedge fund leverage hit a five-year high last week, with speculators buying banks, trading companies and insurance firms, Goldman Sachs data (GS.N) , opens new tab showed, after U.S. interest rates held steady and just before U.S. attacks on Iran's nuclear sites. The U.S. Federal Reserve held interest rates steady on Wednesday last week and indicated they were in no rush to cut interest rates. Sign up here. The U.S. attacked Iranian nuclear sites on Saturday, which sent oil prices towards a year-high on Monday, with further expected price gains mounting on fears that an Iranian retaliation may include a closure of the Strait of Hormuz, through which roughly a fifth of global crude supply flows. Gross leverage, a gauge of how much hedge funds are trading, rose to roughly 294%, the most since 2020. Leverage was at 271.8% at the start of the year. Hedge funds upped their short positions on Europe and Asia, while remaining modestly long on North American stock, according to the note to clients from Goldman Sachs prime brokerage data. A short position expects a stock price to fall, whereas a long position bets it will rise. Financial stocks including banks, insurance companies and trading firms featured as one of the most popular stock sectors last week. The balance sheets of these firms benefit from higher rates, particularly banks, which collect payments when they lend money to corporates and consumers. Hedge funds bought financial firms' stock in North America and Europe, but held a slight short in these shares in Asia, the Goldman Sachs note showed. Hedge funds ended the week with a net long position in energy stocks as well, it said. Global stock picking returns ticked up over 4% so far this year, with returns in Europe surpassing 10%. Global systematic returns reached almost 12%, the note said. https://www.reuters.com/business/finance/hedge-flow-hedge-fund-leverage-reaches-five-year-high-buying-bank-stocks-goldman-2025-06-23/

2025-06-23 07:46

BRUSSELS, June 23 (Reuters) - An Iranian closure of the Strait of Hormuz would be dangerous and "not good for anybody", the European Union's top diplomat said on Monday. "The concerns of retaliation and this war escalating are huge, especially closing of the Strait of Hormuz by Iran is something that would be extremely dangerous and not good for anybody," Kaja Kallas told reporters ahead of a meeting with EU foreign ministers. Sign up here. Iran's Press TV reported on Sunday that Iran's Supreme National Security Council needed to make a final decision on whether to close the strait, after parliament was reported to back the measure. About 20% of global oil and gas demand flows through the channel. https://www.reuters.com/world/middle-east/any-iranian-closure-hormuz-strait-would-be-extremely-dangerous-eus-top-diplomat-2025-06-23/

2025-06-23 07:16

ATHENS, June 23 (Reuters) - Greece on Monday declared a state of emergency on Chios island, where hundreds of firefighters have been battling wildfires for a second day as winds further whipped up the blaze, causing power cuts and the evacuation of residents. "The situation since yesterday on the island is quite difficult because we constantly have new fronts and resurgences and the climatic conditions are not favorable," Yiannis Kefalogiannis, the climate crisis and civil protection minister, said upon his arrival in Chios. Sign up here. He confirmed that 170 more firefighters will reinforce 11 teams of about 190 firefighters deployed on the island in the northeastern Aegean Sea, who were trying to prevent the conflagration from spreading to homes and areas known for producing mastiha, a natural resin harvested from mastic trees. Thirty more vehicles will reinforce 38 vehicles already deployed, assisted by 13 helicopters and four water bomber aircraft, Kefalogiannis said. Wind gusts complicated efforts to extinguish the wildfires, which have razed forest and pasture land as they barrel towards the north, west and south of Chios town, the island's capital, causing power cuts and forcing hundreds of villagers to flee to safety. Kefalogiannis said the authorities will investigate the causes of the fires which broke out at different geographical parts of the island. Sitting at Europe's hot southernmost tip, Greece has felt the economic and environmental impact of frequent wildfires in recent years that scientists say have been exacerbated by a fast-changing climate. The country has spent hundreds of millions of euros to compensate households and farmers for damage related to extreme weather and to update firefighting equipment. It has hired a record number of firefighters this year, some 18,000 of them, in anticipation of a challenging fire season. https://www.reuters.com/business/environment/firefighters-battle-wildfires-greeces-chios-island-second-day-2025-06-23/

2025-06-23 06:36

MILAN, June 23 (Reuters) - Italian energy group Eni (ENI.MI) , opens new tab has sold a 20% stake in its retail and renewables business Plenitude to U.S. alternative investment manager Ares Management Corp (ARES.N) , opens new tab for about 2 billion euros ($2.3 billion), it said on Monday. The transaction is part of the Italian group's long-term strategy to find partners to jointly develop its businesses and follows the sale of a 10% stake in Plenitude to Swiss investment fund Energy Infrastructure Partners. Sign up here. "Plenitude is an established leader in energy transition, with a differentiated business model and an outstanding track record," said Stefano Questa, co-head of European Alternative Credit at Ares. Plenitude operates in more than 15 countries and combines more than 4 gigawatts of renewable energy production with a power and gas retail business. It has more than 10 million customers and manages a network of 21,500 charging points for electric vehicles. Mediobanca acted as Eni's financial adviser on the deal, which values Plenitude at more than 12 billion euros including debt. ($1 = 0.8693 euros) https://www.reuters.com/sustainability/climate-energy/italys-eni-sells-20-plenitude-unit-ares-2-billion-euros-2025-06-23/