2025-09-05 04:42

MUMBAI, Sept 5 (Reuters) - The Indian rupee gave up modest early gains to trade little changed on Friday ahead of crucial key U.S. labour market report due later in the day. The U.S. dollar slipped against most Asian currencies while Treasury yields dipped to their lowest in four months on strong wagers on a rate cut by the Federal Reserve later this month. Sign up here. The rupee was at 88.1650 against the dollar, against its close at 88.1450 in the previous session. The interest-rate expectation sensitive 2-year U.S. Treasury yield fell to a four-month low in Asia trading, extending its decline to 3.59%. Money markets are currently pricing in near certainty of a 25-basis-point rate cut by the Fed in September. The wagers were cemented by indications of weakness in U.S. labour data released on Thursday. "A negative surprise or sharp downward revision to July’s figure could put downward pressure on the USD," MUFG said in a note, referring to the jobs report. While a soft print may offer modest relief to the rupee, a rally is unlikely unless equity flows pick up meaningfully or there are positive developments related to U.S. tariffs, a trader at a state-run bank said. Indian exports to the U.S. face a tariff of as much as 50%. MUFG reckons the rupee could weaken to 89 by the first quarter of calendar year 2026 under the assumption that the steep tariffs remain for now but are eventually lowered to 25% sometime next year. https://www.reuters.com/world/india/indian-rupee-little-changed-before-us-data-fed-rate-cut-bets-support-2025-09-05/

2025-09-05 04:33

A look at the day ahead in European and global markets from Kevin Buckland Markets are in buoyant mood, clearly anticipating Friday's hotly awaited U.S. payrolls report will keep the Fed on course to cut rates this month and once more by year-end. Sign up here. It was the previous month's payrolls shocker that got speculation really going that U.S. monetary policy would need to come down fast, and economists predict an only slightly higher reading this time around. Fed Chair Jay Powell surprised many at last month's closely watched Jackson Hole symposium with a keynote that suggested a cut on September 17 is coming unless the data gets in the way. Fedspeak from other officials has been leaning dovish on the whole, and the window for additional comments closes later today as the central bank enters a blackout period in the run-up to its policy gathering. U.S. stock futures are pointing higher after the S&P 500 notched a record-high close overnight, and the Nasdaq Composite came within 6 points of doing the same. European futures are doing the same, and Asian markets from Japan to Taiwan to mainland China are rising about 1%. Bond markets too, which had turned so volatile at the start of the week, have been calmed by a run of soft U.S. jobs data that has bolstered confidence for a non-farm payrolls report that will further the narrative for easier Fed policy. After surging to record highs on Wednesday, Japanese 30-year government bond yields have retraced about half of that day's rise. Similarly dated U.S. Treasury yields have slipped to three-week lows, while two- and 10-year yields have eased to four-month troughs. British 30-year gilt yields are back at the levels from a week ago, before the four-day spike to the highest since 1998. German and French yields are down from multi-year peaks. Gold is also biding its time, hovering below Wednesday's all-time high following a breathless seven-day rally. That means there's a lot riding on a benign U.S. payrolls reading. And there's not a lot to distract from it in the lead-up, with German factory data, British retail sales and revised euro-area GDP the most noteworthy. Key developments that could influence markets on Friday: -U.S. payrolls -Canada payrolls -Euro zone revised GDP -Germany industrial orders, manufacturing output -UK retail sales, Halifax house prices https://www.reuters.com/world/china/global-markets-view-europe-2025-09-05/

2025-09-05 02:51

MUMBAI, September 05 (Reuters) - The Indian rupee is expected to open steady on Friday, supported by modest gains in regional peers heading into the closely watched U.S. non-farm payrolls report that could cement expectations of policy easing by the U.S. Federal Reserve. The 1-month non-deliverable forward indicated the rupee will open in the 88.10-88.14 range versus the U.S. dollar, compared with 88.1450 in the previous session. Sign up here. "USD/INR may try to move below 88 but that is expected to be short-lived due to the strong client interest in buying on dips," an FX salesperson at a large foreign bank said. Data released on Thursday kept expectations of a Fed rate cut intact with the number of Americans filing new applications for jobless benefits rising more than expected last week, consistent with softening of labour market conditions. New York Fed President John Williams said that a gradual lowering in short-term borrowing costs is likely to happen over time if the economy meets his current forecast of modest increases in unemployment and a softening of inflation trends next year. Despite burgeoning expectations of a rate cut in the U.S., the rupee has lingered on the weak side of 88 as worries over the impact of steep U.S. tariffs prompted importers to step up hedging while equity inflows remain lacklustre, traders said. The rupee is on course to end the week little changed after dipping to a record low of 88.33 on September 1. Traders reckon that while there will be a modest reaction to a soft U.S. non-farm payrolls report, due post Indian market hours, an upside surprise would have a larger bearing on the local currency when the market re-opens after a local holiday on Monday. Analysts at Goldman Sachs expect a below-consensus addition of 60,000 in U.S. non-farm payrolls for August and a marginal rise in the unemployment rate to 4.3%. The dollar was a touch lower against a basket of peers at 98.1 and slipped 0.2% against the Japanese yen following the announcement of lower tariffs on Japanese automobile imports. KEY INDICATORS: ** One-month non-deliverable rupee forward at 88.26; onshore one-month forward premium at 11.50 paisa ** Dollar index down 0.1% at 98.1 ** Brent crude futures down 0.4% at $66.8 per barrel ** Ten-year U.S. Treasury yield at 4.16% ** As per NSDL data, foreign investors sold a net $77.7mln worth of Indian shares on Sep. 3 ** NSDL data shows foreign investors sold a net $16.4mln worth of Indian bonds on Sep. 3 https://www.reuters.com/world/india/rupee-may-meander-below-88usd-us-labour-data-focus-2025-09-05/

2025-09-05 00:53

BEIJING, Sept 5 (Reuters) - China's finance ministry announced on Friday that 940 million yuan ($131.42 million) had been allocated in agricultural disaster relief, in conjunction with the country's agriculture and water resources ministries, following record-breaking rains. The funding is to be used to replant washed-out crops, repair agricultural production facilities to ensure grain production and accelerate the repair of reservoirs across the country, the statement added. Sign up here. ($1 = 7.1529 Chinese yuan) https://www.reuters.com/business/environment/china-allocated-131-million-agricultural-disaster-relief-finance-ministry-says-2025-09-05/

2025-09-05 00:47

Sept 5 (Reuters) - Oil prices drifted down in early trading on Friday for the third straight day as investors awaited an OPEC+ meeting this weekend that will consider further output hikes. Brent crude futures fell 23 cents, or 0.3%, to $66.77 a barrel at 0012 GMT, while U.S. West Texas Intermediate crude fell 19 cents, or 0.3%, to $63.29. Sign up here. Eight members of the Organization of the Petroleum Exporting Countries and allies like Russia in OPEC+ will consider further raising production in October at a meeting on Sunday, two sources familiar with the discussions told Reuters. Another boost would mean that OPEC+, which pumps about half of the world's oil, would be starting to unwind a second layer of output cuts of about 1.65 million barrels per day, or 1.6% of world demand, more than a year ahead of schedule. Meanwhile, U.S. crude storage posted a surprise build of 2.4 million barrels last week as refineries headed into maintenance season. Analysts had estimated a 2-million-barrel draw in a Reuters poll, while the American Petroleum Institute industry group said stocks rose by around 600,0000 barrels. U.S. President Donald Trump told European leaders on Thursday that Europe must stop buying Russian oil, a White House official said. Any cuts to Russia's crude exports could push global oil prices higher. https://www.reuters.com/world/middle-east/oil-prices-ease-investors-await-opec-output-decision-2025-09-05/

2025-09-05 00:37

VLADIVOSTOK, Russia, Sept 5 (Reuters) - The head of Russia's State Atomic Energy Corporation Rosatom Alexei Likhachev said on Friday the company was ready to discuss with the U.S.'s Westinghouse the issue of nuclear fuel at Ukraine's Zaporizhzhia nuclear power plant, RIA news agency reported. In June, Russia asked the U.N. nuclear watchdog to mediate between Moscow and Washington to resolve the question of what to do with U.S. nuclear fuel stored at the Ukrainian power plant controlled by Russian forces. Sign up here. Westinghouse and U.S. energy officials had previously raised intellectual property concerns with Russia in connection with the fuel issue, according to Likhachev. https://www.reuters.com/world/russia-is-ready-discuss-nuclear-fuel-ukraines-zaporizhzhia-with-us-ria-2025-09-05/