2023-12-05 08:44

Copyrighted Image by: Reuters. Mitsubishi UFJ Financial Group (NYSE:MUFG), one of Japan's premier financial institutions, has entered into a partnership with JPYC Inc. to integrate the yen-backed stablecoin into its digital asset platform, Progmat. This move is aimed at streamlining services such as cross-border payments and comes as part of the financial giant's broader strategy to embrace digital currency technology. The collaboration was announced today and marks a significant step in the adoption of cryptocurrency in mainstream financial operations. Progmat, which was launched in September, is MUFG's latest venture into the digital asset space, developed with the support of key partners like SBI Holdings and Mizuho Trust and Banking. The integration of JPYC's yen-backed stablecoin onto the Progmat platform is set against the backdrop of Japan's evolving regulatory landscape for digital assets. Under new regulations, JPYC is preparing to issue a funds transfer stablecoin through Progmat while also transitioning to a trust-type stablecoin without transaction limits. This transition is subject to JPYC obtaining the necessary license, for which it has already applied, envisioning MUFG as the custodian bank holding the stablecoin reserves. MUFG is also looking to facilitate currency conversions for Japanese users by enabling efficient exchanges between yen-backed stablecoins and their USD equivalents. This initiative follows MUFG's research conducted in November on XJPY and XUSD, which investigated potential enhancements to settlement processes within the digital asset market. The strategic alliance between MUFG and JPYC reflects a growing trend among traditional financial institutions to integrate cryptocurrency solutions into their service offerings. By doing so, they aim to provide customers with more flexible and efficient payment options that align with the global shift towards digital finance. https://www.investing.com/news/forex-news/mufg-teams-up-with-jpyc-to-enhance-yenbacked-stablecoin-transactions-93CH-3249404

2023-12-05 08:32

Copyrighted Image by: Reuters SINGAPORE - DigiFT, a Singapore-based financial technology firm, has recently achieved significant regulatory milestones, securing a Capital Markets Services (CMS) license and Recognized Market Operator (RMO) status from the Monetary Authority of Singapore (MAS). This development, announced today, allows DigiFT to legally manage the issuance and facilitate secondary market liquidity for security tokens on the Ethereum blockchain. The company, which has been part of MAS's regulatory sandbox since June 2022, is now authorized to handle on-chain securities and manage co-investment scheme transactions. With these accreditations, DigiFT can offer regulated financial activities on-chain, including the legal issuance and trading of digital securities within both primary and secondary markets. Under the leadership of CEO Henry Zhang, DigiFT launched an Automated Market Maker (AMM) system in 2021. This system is designed to support liquid secondary markets for tokenized bonds, equities, and other assets. The company's vision is to revolutionize regulated financial activities on-chain while enhancing user experience with innovative offerings. These include on-chain proof-of-asset disclosure and cross-chain deployment capabilities. The platform's future plans involve expanding the reach of its mobile application regionally and adding features that will improve the investment process for users globally. https://www.investing.com/news/cryptocurrency-news/digift-secures-key-singapore-regulatory-approvals-for-token-trading-93CH-3249396

2023-12-05 06:59

Copyrighted Image by: Reuters. KIEV - The National Bank of Ukraine (NBU) has actively participated in the currency market, selling a significant amount of foreign currency in an effort to manage the exchange rate and monetary policy within the country. Recent reports indicate that between November 27 and December 1, the NBU sold approximately $739.5 million. This latest intervention is part of a broader strategy that has seen the NBU sell a total of $25.548 billion so far in 2023, while only purchasing $214.66 million. These actions represent a marked shift from the previous year's transactions, where the bank sold $26.38 billion and purchased a notably higher amount of $3.27 billion. The move towards a more active role in the currency market follows a change in policy earlier this year, when under the leadership of Governor Andriy Pyshhnyy, the NBU transitioned to a managed flexibility exchange rate regime. This shift came after a period of maintaining a fixed exchange rate that lasted until October 3, 2023. The NBU's interventions are aimed at stabilizing the hryvnia, Ukraine's national currency, amidst various economic challenges. By selling foreign currency, the central bank can influence the exchange rate to help control inflation and support overall economic stability. The managed flexibility regime allows for some fluctuation in the exchange rate, guided by market forces, but still permits the central bank to intervene when deemed necessary to prevent excessive volatility that could harm the Ukrainian economy. This approach represents a balance between the rigid fixed exchange rate and a fully free-floating currency system. https://www.investing.com/news/forex-news/national-bank-of-ukraine-sells-7395m-in-currency-market-93CH-3249322

2023-12-05 05:33

Copyrighted Image by: Reuters. Investing.com-- Gold prices rose slightly in Asian trade on Tuesday, steadying after racing to record highs earlier in the week as persistent expectations of a less dovish Federal Reserve and increased safe haven demand supported the yellow metal. The yellow metal saw an abnormally large jump in early trade on Monday, with spot prices briefly hitting a lifetime high of $2,148.78 an ounce before tumbling sharply from the peak. A mix of factors drove the surge, with the most prominent being somewhat less hawkish signals from the Federal Reserve, which ramped up expectations for early interest rate cuts by the central bank. Safe haven demand for the yellow metal rose after an attack on U.S. vessels in the Red Sea pushed up concerns over a broader conflict in the Middle East. A separate, unrelated attack on a prominent gold mine in Peru also pushed up some fears of supply disruptions in gold markets. But while gold came off sharply from its record peaks, it still settled well above the coveted $2,000 an ounce level, indicating that more gains could still be on tap. Spot gold rose 0.2% to $2,032.60 an ounce, while gold futures expiring February rose 0.4% to $2,050.35 an ounce by 00:19 ET (05:19 GMT). Markets reassess rate cut bets before nonfarm payrolls data Anticipation of key U.S. nonfarm payrolls data this Friday saw markets somewhat taper recent optimism over early interest rate cuts by the Federal Reserve. Fed Fund futures prices showed traders now pricing in a 49% chance the central bank will trim rates by as soon as March 2024, down substantially from the 60% chance seen at the beginning of the week. This uncertainty also helped the dollar rebound further from recent lows, which in turn diminished gold’s recent gains. Still, the yellow metal is expected to remain largely well-bid, as markets remained convinced that the Fed was done raising interest rates in this cycle. Rising interest rates push up the opportunity cost of investing in bullion- a trade that had battered the yellow metal earlier this year. Gold was also sitting on strong gains through November. Copper prices steady amid mixed China cues Among industrial metals, copper prices rose slightly on Tuesday, although traders of the red metal took mixed cues from major copper importer China. Copper futures expiring in March rose 0.1% to $3.8303 a pound. A private survey showed that China’s services sector activity grew more than expected in November, coming just a few days after a private survey showed unexpected resilience in the manufacturing sector. But optimism over the readings was largely offset by growing concerns over a new epidemic in the country, following a spike in respiratory illnesses across major Chinese cities. Local media reports said that the National Health Commission- which was at the heart of the country’s draconian anti-COVID measures- was considering curbs on social gatherings. https://www.investing.com/news/commodities-news/gold-prices-steady-above-2000-after-volatile-record-highs-3249284

2023-12-05 04:33

Copyrighted Image by: Reuters. Investing.com-- Most Asian currencies weakened on Tuesday tracking a string of middling economic readings from the region, with the Australian dollar falling sharply after the Reserve Bank kept rates unchanged and offered scant cues on monetary policy. The Australian dollar was the worst performer for the day, down 0.6% after the RBA held rates steady at 4.35%. Governor Michele Bullock said that the bank needed more economic cues before considering any more changes to monetary policy, but warned that inflation risks still persisted. Other weak economic data also dented the Aussie, as the country logged a surprise current account deficit in the third quarter, while contribution from exports fell more than expected. The readings bode poorly for third-quarter gross domestic product data due on Wednesday. The Japanese yen steadied above 147, relinquishing some recent gains after data showed inflation in Japan’s capital fell more than expected in November. Easing inflation gives the Bank of Japan less impetus to immediately begin tightening its ultra-loose policy. Japanese economic conditions were also seen deteriorating, with growth in the country’s services sector missing expectations in November. China’s yuan was flat, even as a private survey showed the country’s services sector grew more than expected in November. But the yuan was presented with new downside risks from growing fears of another epidemic in the country, as local media reports showed a spike in respiratory illnesses across major Chinese cities. Reuters also reported that Chinese state banks were engaging in dollar swaps to support the yuan in the open market. South Korea’s won fell 0.2% as data showed consumer inflation grew less than expected in November, while GDP remained muted in the third quarter. The Indian rupee traded sideways, remaining near record lows before a Reserve Bank of India meeting this week. The RBI is widely expected to keep rates on hold, following a persistent decline in Indian inflation. Dollar rebound pressures Asia FX, nonfarm payrolls awaited Broader Asian currencies were dented by an overnight rebound in the dollar, with greenback recovering some lost ground in anticipation of key nonfarm payrolls data this Friday. The dollar index and dollar index futures were flat in Asian trade after jumping nearly 0.6% overnight. Still, Asian markets were up sharply in November, while the dollar nursed steep losses for the month as traders grew more confident that the Federal Reserve will raise interest rates no more. But markets now grew uncertain over when the bank will begin easing policy in, with Fed Funds futures prices showing that traders saw a nearly 50% chance the bank will trim rates by 25 basis points in March 2024. https://www.investing.com/news/forex-news/asia-fx-weakens-on-soft-economic-data-aussie-slumps-as-rba-stands-pat-3249266

2023-12-05 01:44

Copyrighted Image by: Reuters. Investing.com -- Oil prices settled lower Tuesday, as a stronger dollar and fears about supply outstripping demand remain front and center, offsetting a potential supply risk from ongoing tensions in the Middle East. By 14:30 ET (19.30 GMT), the U.S. crude futures settled 1% lower at $72.32 a barrel and the Brent contract fell 1.1% to $77.20 a barrel. Fears of a potential escalation in the Israel-Hamas conflict came back into play after the U.S. held Iran responsible for an attack on U.S. vessels in the Red Sea by Houthi forces. But traders remained wary of pricing too high a risk premium into oil over the conflict, given that it so far had minimal impact on Middle Eastern oil supplies. Stronger dollar, global economic concerns weigh The dollar rose, weighing on oil prices, despite falling Treasury yields fell amid data pointing to weakness in the labor market as labor demand fell to a two-year low. The signs of a weakening labor market in the U.S come ahead of nonfarm payrolls data, due this Friday. Adding to global growth concerns, ratings agency Moody's (NYSE:MCO) cut its outlook on China's government credit ratings to negative from stable earlier Tuesday, in the latest sign of mounting global concern over a deepening property crisis in the world's second-largest economy. Skepticism over OPEC’s voluntary cuts continue Sentiment on oil prices continued to be soured concerns that the Organization of the Petroleum Exporting Countries and allies, including Russia, a group known as OPEC+, agreements on Nov. 30 to take 2.2 million barrels a day offline early next year may not be enough to curb a potential supply surplus. Russia indicated the cuts agreed by the OPEC+ group will take time to kick in, with the market wary that Moscow may try to talk up the need for cuts while producing as much as possible to fund the ongoing war in Ukraine. https://www.investing.com/news/commodities-news/oil-prices-inch-up-from-near-5mth-lows-as-middle-east-risks-persist-3249241