2025-05-29 10:08
MUMBAI, May 29 (Reuters) - The Indian rupee weakened slightly on Thursday, as the greenback firmed following a court decision to block President Donald Trump's "reciprocal tariffs" from going into effect, while traders also pointed to importer dollar bids weighing on the local unit. The rupee closed at 85.5075 against the U.S. dollar, down 0.2% from its close at 85.36 in the previous session. Sign up here. The dollar index rose to an over one-week high of 100.48 before slipping back below the 100-handle while Asian currencies were trading mixed. The offshore Chinese yuan was little changed at 7.19 while the Malaysian ringgit led losses among Asian peers, with a 0.5% decline. Traders also pointed to routine dollar bids from importers weighing on the rupee. "From a technical standpoint, the USD/INR pair remains in a consolidation zone with resistance near 85.70-85.90 levels and strong support of 84.90-85.10 levels," said Amit Pabari, managing director at FX advisory firm CR Forex. "A breach on either side could pave a sharp movement in that direction," Pabari added. The U.S. court decision to halt reciprocal tariffs provided some relief to the greenback which had otherwise struggled this year due to trade uncertainty. The dollar strengthened against safe havens like the Swiss franc and Japanese yen as well. "We think the combination of this tariff news and a slightly hawkish FOMC minutes (almost all participants commented on the risk that inflation could prove to be more persistent than expected), can help the dollar stay bid in the near term," ING said in a note. Minutes of the Federal Reserve's May policy meeting also pointed out that the recent sharp decline in the dollar was primarily driven by increased foreign exchange hedge ratios, rather than significant foreign selling of U.S. assets. https://www.reuters.com/world/india/rupee-ends-slightly-lower-firmer-dollar-importer-hedging-2025-05-29/
2025-05-29 08:52
May 29 (Reuters) - The Russian rouble strengthened sharply on Thursday, soaring past the 78 mark against the dollar to reach a two-year high, after Moscow proposed a fresh round of peace talks with Kyiv. The rouble has firmed by more than 40% against the dollar this year, a rise analysts have attributed to the easing of geopolitical tensions - mainly with U.S. President Donald Trump's administration - and the central bank's tight monetary policy, which has reduced demand for foreign currency. Sign up here. By 0843 GMT, the rouble was up 1.3% at 78.80 per U.S. dollar, LSEG data based on over-the-counter quotes showed, earlier hitting 77.95, its strongest since May 29, 2023. Russia on Wednesday proposed holding the next round of direct talks with Ukraine on June 2 in Istanbul. Kyiv has yet to respond to the proposal. Trump, meanwhile, said he was not yet prepared to impose new sanctions on Russia because he did not want the penalties to scuttle a potential peace deal. That news backdrop, as well as Russia saying it had completed a draft peace memorandum, contributed to the rouble's strength, said Promsvyazbank's Yevgeny Loktyukhov, along with an uptick in oil prices. Brent crude oil , a global benchmark for Russia's main export, was up 1.2% at $65.68 a barrel. The improvement of the geopolitical background and the situation on oil markets should compensate for the traditional month-end foreign currency supply squeeze after tax payments are made, said Loktyukhov. Exporters usually convert their foreign currency earnings into roubles to pay local liabilities at the end of each month, buttressing the Russian currency. Against the Chinese yuan, the rouble was up 1% at 10.90 on the Moscow Stock Exchange. Russia's central bank uses yuan for foreign exchange interventions, and it is the most traded foreign currency in Russia. https://www.reuters.com/markets/europe/russian-rouble-soars-past-78-vs-dollar-reach-two-year-high-2025-05-29/
2025-05-29 07:57
TOKYO, May 29 (Reuters) - Sony's (6758.T) , opens new tab CEO said on Thursday the spin-off of the financial services arm will secure that business its own fundraising capabilities. "It is significant that, through the spin-off, Sony (Financial Group) will secure its own fundraising capabilities while continuing to use the Sony brand and collaborate with Sony Group," Sony CEO Hiroki Totoki said at an investor day. Sign up here. Sony plans to distribute just over 80% of its shares to Sony Financial Group, which includes banking and insurance, to shareholders through dividends in kind. It is the first partial spin-off by a company in Japan with a direct listing - the first in Japan in more than two decades - set for September 29. The business plans to repurchase shares totaling some 100 billion yen through to March 2027. Its origins date back to the late 1970s, when Sony co-founder Akio Morita moved to set up a life insurance business selling to consumers. In more recent years Sony sold off struggling hardware operations and focused on entertainment such as the PlayStation games business. More than 60% of the conglomerate's profit came from its entertainment businesses last year. https://www.reuters.com/business/sony-says-financial-arm-spin-off-will-secure-fundraising-capabilities-2025-05-29/
2025-05-29 07:29
MUMBAI, May 29 (Reuters) - India is likely to produce a record 117.5 million metric tons of wheat in the year ending June 2025, the farm ministry said, above its March forecast of 115.4 million tons, as higher prices prompted farmers to expand the area planted with high-yielding seed varieties. India, the world's biggest wheat producer after China, produced 113.3 million tons of wheat in 2024, the farm ministry said in a statement issued late on Wednesday. Sign up here. However, a leading industry body said the crop was nearly 6.25% lower than the government's estimate. The country's rice production in 2025 is also set to climb to a record high, with the ministry estimating it at 149 million metric tons, up from last year's 137.8 million tons. Record production of wheat and rice will lift the country's total food grains production to 354 million tons from last year's 332.3 million tons. A strong wheat harvest in India is rapidly replenishing stocks, meaning the country will be able to meet domestic demand without imports this year, contrary to market talk that it would need overseas supplies, and a potential drag on global prices. India is the world's biggest exporter of rice and higher production will help New Delhi to increase shipments. https://www.reuters.com/world/china/india-wheat-rice-production-rise-record-high-government-says-2025-05-29/
2025-05-29 07:13
May 29 (Reuters) - Governments in Asia and Europe are raising far less debt in U.S. dollars than usual, preferring to issue at home as they avoid exposure to rising U.S. yields, currency volatility and broader concerns about U.S. government finances. According to Dealogic data, issuance of dollar bonds by non-U.S. sovereigns dropped 19% to $86.2 billion in the first five months of this year compared with the same period last year, marking the first decline in three years. Sign up here. The January-May dollar bond issuance by the governments of Canada and Saudi Arabia fell 31% and 29% to $10.9 billion and $11.9 billion, respectively, while issuance by Israel and Poland declined 37% and 31% to $4.9 billion and $5.4 billion. At the same time, Dealogic data showed global sovereigns’ local currency bond issuance had climbed to a five-year high of $326 billion so far this year. This drop in dollar bond issuance comes at a time when global investors are pulling back from U.S. assets, partly in response to tariffs and as they question U.S. financial dominance and safety. Johnny Chen, portfolio manager at William Blair’s emerging markets debt team, said the rise in local currency issuance is largely driven by falling domestic interest rates as inflationary pressures ebb, noting that India, Indonesia and Thailand have all cut their benchmark interest rates this year. "In India’s case, the local currency debt market has also matured further with the inclusion of Indian local currency debt in global bond indices. This development has likely expanded the investor base, prompting more local currency issuance in 2025," he said. Brazil is considering issuing its first sovereign bonds in yuan, two government sources said, after President Luiz Inacio Lula da Silva's visit to Beijing concluded with a wave of Chinese investment announcements and a currency swap agreement. Brazil’s sovereign U.S. dollar bond issuance has dropped 44% to $2.4 billion this year, data showed. Saudi Arabia raised 2.25 billion euros ($2.36 billion) through a euro-denominated bond sale, including its first tranche of so-called green bonds, as part of its global medium-term note program, aligning with its strategy to diversify away from dollar-linked financing. "The challenge with the onshore local currency is that those issuances tend to be much smaller, they're less liquid," said Kenneth Orchard, head of international fixed income at T. Rowe Price, based in London. "But we think over time there are going to be more international investors in those markets." https://www.reuters.com/sustainability/sustainable-finance-reporting/global-government-issuance-us-dollar-debt-tumbling-2025-data-shows-2025-05-29/
2025-05-29 06:56
TOKYO, May 29 (Reuters) - Japan's Kyushu Electric Power (9508.T) , opens new tab said on Thursday it will sign a 20-year purchase contract with U.S. energy firm Energy Transfer (ET.N) , opens new tab to buy up to 1 million metric tons of liquefied natural gas a year from its Lake Charles LNG project. It marks the Japanese utility's first long-term LNG purchase deal from the United States and is expected to diversify the company's procurement sources and contribute to stable supply, the company said in a statement. Sign up here. A company spokesperson declined to disclose the contract's terms or the timing of the signing, but said that imports are expected to start in 2030, if the project proceeds as planned. Although Kyushu Electric had also considered investing in the Lake Charles project, the spokesperson said it ultimately decided against it, citing a "lower priority compared to other internal investment opportunities". The contract is on free-on-board (FOB) terms with no destination restrictions, allowing the utility to procure LNG flexibly in response to fluctuations in electricity supply and demand, such as adjusting receipt timing at its discretion or selling to other companies when demand is low. Earlier this month, Energy Transfer said it was nearing a go-ahead on its Lake Charles LNG project after an unnamed Japanese company agreed to buy 1 million metric tonnes of LNG from the proposed export facility. Energy Transfer said at that time it had 10.5 MTPA of its targeted 16.5 MTPA in committed LNG sales and that it was confident it could reach a final investment decision by the end of the year. U.S. President Donald Trump has pushed allies like Japan and South Korea to buy U.S. oil and gas while threatening tariffs on their exports. When asked whether Kyushu Electric had received a request from the Japanese government to purchase U.S. LNG, the company spokesperson said it had not. https://www.reuters.com/business/energy/kyushu-electric-sign-20-year-deal-buy-lng-us-lake-charles-project-2025-05-29/
