IMF data shows the US Dollar is slowly losing its grip as the world’s reserve currency.&nbsp;

It’s still the most held reserve currency but has been declining for 20 years.&nbsp;

This trend continues even with the dollar strengthening recently.&nbsp;

Central banks are diversifying their reserves, going into non-traditional currencies like the Australian dollar, Canadian dollar and Chinese yuan.&nbsp;

It’s all about yield, diversification and ease of trading with new digital tech.&nbsp;

Some think geopolitical tensions will speed up the decline of the dollar’s reserve status.&nbsp;

But data shows this trend is bigger than just a few big reserve holders and includes most G20 economies.&nbsp;

China has actively promoted the internationalisation of its currency.&nbsp;

But despite that, the yuan’s share of global reserves has plateaued recently, mostly because of the recent depreciation of the currency.&nbsp;

US financial sanctions have also impacted reserve management decisions.&nbsp;

Central banks are slowly shifting away from currencies under sanctions, towards gold.&nbsp;

Gold’s share of global reserves is still low historically,&nbsp;

But some emerging market central banks are accumulating gold as a hedge against economic and geopolitical risks.&nbsp;

IMF says the decline of the dollar’s dominance is a long-term process, not a sudden drop.&nbsp;

While the dollar is still the most important reserve currency, central banks are looking to diversify their holdings.&nbsp;

This ‘de-dollarisation’ trend is driven by yield, tech and geopolitical risk.&nbsp;

Diversification is happening beyond major countries like Russia &amp; China. 46 G20 countries are currently leading this shift away from dollar.&nbsp;

IMF data shows the US Dollar is slowly losing its grip as the world’s reserve currency. It’s still the most held reserve currency but has been declining for 20 years.

IMF data shows the US Dollar is slowly losing its grip as the world’s reserve currency. It’s still the most held reserve currency but has been declining for 20 years. This trend continues even with the dollar strengthening recently. Central banks are diversifying their reserves, going into non-traditional currencies like the Australian dollar, Canadian dollar and Chinese yuan. It’s all about yield, diversification and ease of trading with new digital tech. Some think geopolitical tensions will speed up the decline of the dollar’s reserve status. But data shows this trend is bigger than just a few big reserve holders and includes most G20 economies. China has actively promoted the internationalisation of its currency. But despite that, the yuan’s share of global reserves has plateaued recently, mostly because of the recent depreciation of the currency. US financial sanctions have also impacted reserve management decisions. Central banks are slowly shifting away from currencies under sanctions, towards gold. Gold’s share of global reserves is still low historically, But some emerging market central banks are accumulating gold as a hedge against economic and geopolitical risks. IMF says the decline of the dollar’s dominance is a long-term process, not a sudden drop. While the dollar is still the most important reserve currency, central banks are looking to diversify their holdings. This ‘de-dollarisation’ trend is driven by yield, tech and geopolitical risk. Diversification is happening beyond major countries like Russia & China. 46 G20 countries are currently leading this shift away from dollar.

Dollar dominance fading? IMF data reveals falling share of US currency in global reserves

The euro collapsed dramatically on Monday, impacted by political upheaval in France following President Emmanuel Macron's demand for an early legislative election. Meanwhile, the dollar held solid ahead of the Federal Reserve's meeting later this week.<o:p></o:p>

<h2 class="MsoNormal">Euro drops on Macron's election gamble<o:p></o:p></h2>

The euro fell significantly, reaching a one-month low of $1.07485 during Asian trading hours. This fall followed Macron's surprising decision to call an election to reestablish his power. The decision comes on the heels of significant victories for far-right Eurosceptic nationalists in the European Union election. Despite these increases, an aggregated exit poll predicted that the centre, liberal, and socialist parties would maintain a majority in the European Parliament.<o:p></o:p>

As of the latest trading, the euro was down 0.44 per cent at $1.0753, representing a year-to-date fall of more than 2.5 per cent against the dollar. The currency also sank to its lowest level against the pound since August 2022 and dipped 0.2 per cent against the yen.<o:p></o:p>

<h2 class="MsoNormal">Dollar strengthened by robust jobs report<o:p></o:p></h2>

The dollar's strength was boosted by stronger-than-expected US jobs data announced on Friday. Nonfarm payrolls rose by 272,000 jobs last month, considerably exceeding the 185,000 predicted in a Reuters survey. This report has reduced expectations for Fed rate decreases, implying that the central bank may delay the start of its easing cycle this year.<o:p></o:p>

The dollar index, which compares the US currency to six major rivals, increased 0.18 per cent to 105.25, after reaching a nearly one-month high of 105.30 earlier in the session.<o:p></o:p>

<h2 class="MsoNormal">ECB and Fed policy divergence<o:p></o:p></h2>

The European Central Bank (ECB) and the Federal Reserve's opposing monetary policies have put additional pressure on the euro. The ECB began its easing cycle last week, a move that was widely anticipated, but provided little insight into future policy direction as inflation remained over target.<o:p></o:p>

In contrast, the Federal Reserve is expected to hold interest rates steady during its upcoming meeting on Tuesday and Wednesday. Market investors will pay particular attention to Fed Chair Jerome Powell's comments and any revisions to economic estimates. Another important consideration for investors will be inflation data from the United States, which is due on Wednesday.<o:p></o:p>

Charu Chanana, head of currency strategy at Saxo, commented on the situation: "This is adding to the downside pressures for the currency after the ECB kicked off its easing cycle last week, while the Fed may be delaying its rate cuts for now."<o:p></o:p>

<h2 class="MsoNormal">Asian markets and Yen movements<o:p></o:p></h2>

Markets in China, Hong Kong, Taiwan, and Australia were closed for holidays, restricting regional trade activity. Meanwhile, the Japanese yen fell to 157.13 against the dollar. The yen stands around a 34-year low, forcing Japanese officials to seek currency support measures.<o:p></o:p>

The Bank of Japan (BOJ) is scheduled to hold its monetary policy meeting on Thursday and Friday. The BOJ is widely expected to keep short-term interest rates between 0 and 0.1%. Reuters reported last week that BOJ policymakers are looking for methods to reduce their bond-buying program and may publish new guidelines.<o:p></o:p>

<h2 class="MsoNormal">Sterling holds steady<o:p></o:p></h2>

Sterling traded at $1.27145, having hit a one-week low of $1.2700 earlier in the session.<o:p></o:p>

(With inputs from Agencies)<o:p></o:p>

The euro collapsed dramatically on Monday, impacted by political upheaval in France following President Emmanuel Macron's demand for an early legislative election.

The euro collapsed dramatically on Monday, impacted by political upheaval in France following President Emmanuel Macron's demand for an early legislative election. Meanwhile, the dollar held solid ahead of the Federal Reserve's meeting later this week. Euro drops on Macron's election gamble The euro fell significantly, reaching a one-month low of $1.07485 during Asian trading hours. This fall followed Macron's surprising decision to call an election to reestablish his power. The decision comes on the heels of significant victories for far-right Eurosceptic nationalists in the European Union election. Despite these increases, an aggregated exit poll predicted that the centre, liberal, and socialist parties would maintain a majority in the European Parliament. As of the latest trading, the euro was down 0.44 per cent at $1.0753, representing a year-to-date fall of more than 2.5 per cent against the dollar. The currency also sank to its lowest level against the pound since August 2022 and dipped 0.2 per cent against the yen. Dollar strengthened by robust jobs report The dollar's strength was boosted by stronger-than-expected US jobs data announced on Friday. Nonfarm payrolls rose by 272,000 jobs last month, considerably exceeding the 185,000 predicted in a Reuters survey. This report has reduced expectations for Fed rate decreases, implying that the central bank may delay the start of its easing cycle this year. The dollar index, which compares the US currency to six major rivals, increased 0.18 per cent to 105.25, after reaching a nearly one-month high of 105.30 earlier in the session. ECB and Fed policy divergence The European Central Bank (ECB) and the Federal Reserve's opposing monetary policies have put additional pressure on the euro. The ECB began its easing cycle last week, a move that was widely anticipated, but provided little insight into future policy direction as inflation remained over target. In contrast, the Federal Reserve is expected to hold interest rates steady during its upcoming meeting on Tuesday and Wednesday. Market investors will pay particular attention to Fed Chair Jerome Powell's comments and any revisions to economic estimates. Another important consideration for investors will be inflation data from the United States, which is due on Wednesday. Charu Chanana, head of currency strategy at Saxo, commented on the situation: "This is adding to the downside pressures for the currency after the ECB kicked off its easing cycle last week, while the Fed may be delaying its rate cuts for now." Asian markets and Yen movements Markets in China, Hong Kong, Taiwan, and Australia were closed for holidays, restricting regional trade activity. Meanwhile, the Japanese yen fell to 157.13 against the dollar. The yen stands around a 34-year low, forcing Japanese officials to seek currency support measures. The Bank of Japan (BOJ) is scheduled to hold its monetary policy meeting on Thursday and Friday. The BOJ is widely expected to keep short-term interest rates between 0 and 0.1%. Reuters reported last week that BOJ policymakers are looking for methods to reduce their bond-buying program and may publish new guidelines. Sterling holds steady Sterling traded at $1.27145, having hit a one-week low of $1.2700 earlier in the session. (With inputs from Agencies)

Euro plunges amid French political uncertainty and strong Dollar

Imagine conducting $260 billion worth of International trade without using a single US dollar. That's exactly what China and Russia are pulling off this year and it's a move that could significantly dent the dominance of the US dollar which has reigned Supreme for decades. Watch in for more details!

China-Russia trade deal paves way for BRICS De-Dollarization

Let's look at how markets opened this morning. Markets looked directionless, with Asian benchmarks range-bound after wall street stocks extended their longest losing streak since January.

Dollar takes a breather as investors reassess FED's rate path

<o:p></o:p>

The dollar showed cautious trading on Tuesday, failing to gain significant momentum from an uptick in US Treasury yields. <o:p></o:p>

Despite this, the Japanese yen faced continued pressure, hovering near multi-decade lows and prompting market watchers to stay vigilant for potential intervention signals.<o:p></o:p>

The greenback recorded a modest 0.03 per cent increase against the yen, reaching 151.87 yen. <o:p></o:p>

This level is close to the 34-year high of 151.975 yen achieved last month. <o:p></o:p>

Japanese officials have intensified their verbal interventions in attempts to shield the currency. <o:p></o:p>

Finance Minister Shunichi Suzuki said that Tokyo was readiness to counter the yen's recent steep declines. <o:p></o:p>

"Authorities won't rule out any options in dealing with excessive yen moves,” he said.<o:p></o:p>

The persistent threat of Tokyo's intervention has prevented the dollar from surpassing the crucial 152 yen mark, even as US Treasury yields—which typically correlate closely with the dollar/yen pair—rise. <o:p></o:p>

Ryota Abe, an economist at SMBC, anticipates the dollar/yen pair to remain within a narrow range of 151.0-152.5. <o:p></o:p>

He also foresees potential Japanese intervention in the currency market to "curb volatilities" should there be a rapid escalation in the dollar/yen pair.<o:p></o:p>

In the wider currency market scenario, the New Zealand dollar saw a 0.15 per cent uptick, reaching $0.6041. <o:p></o:p>

This comes despite a recent survey by a private think tank indicating weakened business confidence in New Zealand for the first quarter due to various challenges faced by businesses. <o:p></o:p>

Meanwhile, the sterling edged up 0.04 per cent to $1.2658, and the euro stabilised at $1.0860, near a two-week high.<o:p></o:p>

Although the US Treasury yields have increased, the dollar's performance remains dull. <o:p></o:p>

This discrepancy arises as traders recalibrate their expectations regarding the Federal Reserve's potential rate cuts later this year. <o:p></o:p>

The greenback struggled near a two-week low at 104.13 against a basket of currencies. <o:p></o:p>

Notably, the two-year Treasury yield climbed to an over four-month high of 4.8010 per cent on Tuesday, while the 10-year yield held firm near a similar peak at 4.4278 per cent.<o:p></o:p>

Ray Attrill, head of FX strategy at National Australia Bank (NAB), commented on the disconnect between rising US Treasury yields and the dollar's subdued response. <o:p></o:p>

He said, "It's been a few days now, where we're seeing an increasing disconnect between what's happening in US Treasuries...but the dollar is failing to respond to that." <o:p></o:p>

Attrill highlighted global factors contributing to this phenomenon, mentioning "increasing signs of improvement in the rest of the world outside the United States" and a "global reflation trade" driven by strength in commodity prices.<o:p></o:p>

In other currency movements, the Australian dollar declined by 0.01 per cent to $0.6604, while the offshore Chinese yuan was at 7.2437 per dollar. <o:p></o:p>

Although the yuan has stabilised this week due to favourable Chinese economic data, it remains close to a 4-1/2 month low of 7.2364 reached on April 3. <o:p></o:p>

The currency has depreciated by 1.8 per cent this year despite the central bank's efforts to stabilise it.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The dollar showed cautious trading on Tuesday, failing to gain significant momentum from an uptick in US Treasury yields. Despite this, the Japanese yen faced continued pressure, hovering near multi-decade lows and prompting market watchers to stay vigilant for potential intervention signals.

The dollar showed cautious trading on Tuesday, failing to gain significant momentum from an uptick in US Treasury yields. Despite this, the Japanese yen faced continued pressure, hovering near multi-decade lows and prompting market watchers to stay vigilant for potential intervention signals. The greenback recorded a modest 0.03 per cent increase against the yen, reaching 151.87 yen. This level is close to the 34-year high of 151.975 yen achieved last month. Japanese officials have intensified their verbal interventions in attempts to shield the currency. Finance Minister Shunichi Suzuki said that Tokyo was readiness to counter the yen's recent steep declines. "Authorities won't rule out any options in dealing with excessive yen moves,” he said. The persistent threat of Tokyo's intervention has prevented the dollar from surpassing the crucial 152 yen mark, even as US Treasury yields—which typically correlate closely with the dollar/yen pair—rise. Ryota Abe, an economist at SMBC, anticipates the dollar/yen pair to remain within a narrow range of 151.0-152.5. He also foresees potential Japanese intervention in the currency market to "curb volatilities" should there be a rapid escalation in the dollar/yen pair. In the wider currency market scenario, the New Zealand dollar saw a 0.15 per cent uptick, reaching $0.6041. This comes despite a recent survey by a private think tank indicating weakened business confidence in New Zealand for the first quarter due to various challenges faced by businesses. Meanwhile, the sterling edged up 0.04 per cent to $1.2658, and the euro stabilised at $1.0860, near a two-week high. Although the US Treasury yields have increased, the dollar's performance remains dull. This discrepancy arises as traders recalibrate their expectations regarding the Federal Reserve's potential rate cuts later this year. The greenback struggled near a two-week low at 104.13 against a basket of currencies. Notably, the two-year Treasury yield climbed to an over four-month high of 4.8010 per cent on Tuesday, while the 10-year yield held firm near a similar peak at 4.4278 per cent. Ray Attrill, head of FX strategy at National Australia Bank (NAB), commented on the disconnect between rising US Treasury yields and the dollar's subdued response. He said, "It's been a few days now, where we're seeing an increasing disconnect between what's happening in US Treasuries...but the dollar is failing to respond to that." Attrill highlighted global factors contributing to this phenomenon, mentioning "increasing signs of improvement in the rest of the world outside the United States" and a "global reflation trade" driven by strength in commodity prices. In other currency movements, the Australian dollar declined by 0.01 per cent to $0.6604, while the offshore Chinese yuan was at 7.2437 per dollar. Although the yuan has stabilised this week due to favourable Chinese economic data, it remains close to a 4-1/2 month low of 7.2364 reached on April 3. The currency has depreciated by 1.8 per cent this year despite the central bank's efforts to stabilise it. (With inputs from Reuters)

The Japanese yen struggles amid rising US treasury yields: Report

Japan's Yen dropped to its lowest level since 1990 on Wednesday before rebounding slightly. With the currency hitting a 34-year-low, Japanese authorities are now likely to intervene in the forex market. The dollar reached 151.975 yen, its strongest against the yen since mid-1990, before easing 0.13% to end at 151.36.

Japanese Yen drops to its lowest level since 1990

'Dollar shortage' means insufficient reserves of U.S. currency, impeding a country's capacity to effectively engage in global trade activities.

The global financial landscape has seen a shift in recent months, with the dollar shortage gradually easing as the US Federal Reserve slows its interest rate hikes. However, concerns persist as some indicators point to a more nuanced picture.

Shifting tides in the US

In 2022, the Fed aggressively raised interest rates to combat inflation, leading to a surge in US Treasury yields and a subsequent influx of international capital back into the US. This, in turn, triggered a dollar shortage in other countries, impacting global markets.

However, 2023 witnessed a change in stance. As inflation showed signs of abating, the Fed softened its approach, raising rates at a slower pace and hinting at potential cuts in the future. This, coupled with a decline in Treasury yields, has led to a partial easing of the dollar shortage and a subsequent rally in global stocks and bonds.

Mixed foreign investment landscape

While there are signs of shifting sentiment among global investors, claiming a complete resolution to the dollar shortage would be premature. Despite a record high of over $8 trillion in US Treasury holdings by foreign investors in 2023, a closer look reveals that this was primarily driven by falling Treasury rates, not a significant increase in foreign purchases.

Net international capital inflows into the US have decreased year-on-year.

China's decreasing appetite for US debt adds another layer of complexity. While recent months have seen slight increases in Chinese holdings, this is attributed to valuation effects due to declining Treasury rates, not actual investment growth.

However, China's foreign direct investment (FDI) in the US has exhibited a different trend. The fourth quarter of 2023 saw a surge back into surplus territory, dispelling concerns about capital flight. It's crucial to note that interpreting FDI data requires caution due to the different measurement methods employed by China.

While the overall FDI surplus in China has decreased significantly year-on-year, the decline can be attributed mainly to a reduction in reinvestment of profits by foreign enterprises, not necessarily capital withdrawal.

The Bottom Line

The global dollar shortage appears to be easing somewhat, with the US Federal Reserve's changing stance playing a significant role. However, the situation remains fluid, with mixed signals emerging from various indicators, particularly regarding China's financial decisions.

Further observation and analysis are needed to determine the long-term trajectory of the dollar shortage.

'Dollar shortage' means insufficient reserves of U.S. currency, impeding a country's capacity to effectively engage in global trade activities. The global financial landscape has seen a shift in recent months, with the dollar shortage gradually easing as the US Federal Reserve slows its interest rate hikes.

'Dollar shortage' means insufficient reserves of U.S. currency, impeding a country's capacity to effectively engage in global trade activities. The global financial landscape has seen a shift in recent months, with the dollar shortage gradually easing as the US Federal Reserve slows its interest rate hikes. However, concerns persist as some indicators point to a more nuanced picture. Shifting tides in the US In 2022, the Fed aggressively raised interest rates to combat inflation, leading to a surge in US Treasury yields and a subsequent influx of international capital back into the US. This, in turn, triggered a dollar shortage in other countries, impacting global markets. However, 2023 witnessed a change in stance. As inflation showed signs of abating, the Fed softened its approach, raising rates at a slower pace and hinting at potential cuts in the future. This, coupled with a decline in Treasury yields, has led to a partial easing of the dollar shortage and a subsequent rally in global stocks and bonds. Mixed foreign investment landscape While there are signs of shifting sentiment among global investors, claiming a complete resolution to the dollar shortage would be premature. Despite a record high of over $8 trillion in US Treasury holdings by foreign investors in 2023, a closer look reveals that this was primarily driven by falling Treasury rates, not a significant increase in foreign purchases. Net international capital inflows into the US have decreased year-on-year. China's decreasing appetite for US debt adds another layer of complexity. While recent months have seen slight increases in Chinese holdings, this is attributed to valuation effects due to declining Treasury rates, not actual investment growth. However, China's foreign direct investment (FDI) in the US has exhibited a different trend. The fourth quarter of 2023 saw a surge back into surplus territory, dispelling concerns about capital flight. It's crucial to note that interpreting FDI data requires caution due to the different measurement methods employed by China. While the overall FDI surplus in China has decreased significantly year-on-year, the decline can be attributed mainly to a reduction in reinvestment of profits by foreign enterprises, not necessarily capital withdrawal. The Bottom Line The global dollar shortage appears to be easing somewhat, with the US Federal Reserve's changing stance playing a significant role. However, the situation remains fluid, with mixed signals emerging from various indicators, particularly regarding China's financial decisions. Further observation and analysis are needed to determine the long-term trajectory of the dollar shortage.

Global dollar shortage shows signs of easing, but concerns remain

The United States recently crossed a significant threshold, with its national debt surpassing $34.4 trillion. This translates to a concerning trend – an increase of roughly $1 trillion every 100 days. This rapid growth has sent shockwaves through financial markets and raised critical questions about the nation's long-term fiscal health.

Adding fuel to the fire, credit rating agency Moody's Investors Service recently downgraded its outlook on US government debt. Their reasoning? The rising debt levels and the potential for large deficits in the future pose significant risks to the country's fiscal strength.

Economists echo these concerns, highlighting the potential challenges associated with servicing this growing debt, especially in a climate of rising interest rates. The US government could face difficulties borrowing money without adequate measures to curb spending or increase revenue. This scenario, dubbed "debasement", could significantly hamper the government's ability to function effectively.

The ripple effects of the US debt situation extend far beyond government offices. Financial markets are reacting, with investors seeking hedges against a potential weakening of the US dollar. This is evident in the rising prices of traditional safe-haven assets like gold, which has witnessed a 6% increase in the past six months. Bitcoin, often touted as a hedge against inflation and currency devaluation, has also seen a remarkable surge in 2024, reaching its highest level since November 2021. While factors like the recent approval of spot Bitcoin ETFs and the upcoming Bitcoin halving event contribute to this enthusiasm, the underlying concern regarding the US debt situation plays a significant role.

The story doesn't end there. The US continues to grapple with high levels of government spending, with military expenditure remaining robust at 9.3% of GDP over the past four years. This raises crucial questions about the sustainability of such spending levels, particularly against the backdrop of a burgeoning debt burden. Projections suggest a concerning shift in budgetary priorities within the next five years. The US could be spending more on debt interest payments than on defence. This implies a potential for limited resources to invest in other critical areas, further highlighting the situation's complexities.

The looming possibility of a partial government shutdown in March due to budget disagreements adds another layer of uncertainty to this already complex issue. As the US navigates this challenging fiscal landscape, addressing the growing debt and implementing sustainable spending strategies remain crucial steps towards ensuring long-term economic stability.

The United States recently crossed a significant threshold, with its national debt surpassing $34.4 trillion. This translates to a concerning trend – an increase of roughly $1 trillion every 100 days.

The United States recently crossed a significant threshold, with its national debt surpassing $34.4 trillion. This translates to a concerning trend – an increase of roughly $1 trillion every 100 days. This rapid growth has sent shockwaves through financial markets and raised critical questions about the nation's long-term fiscal health. Adding fuel to the fire, credit rating agency Moody's Investors Service recently downgraded its outlook on US government debt. Their reasoning? The rising debt levels and the potential for large deficits in the future pose significant risks to the country's fiscal strength. Economists echo these concerns, highlighting the potential challenges associated with servicing this growing debt, especially in a climate of rising interest rates. The US government could face difficulties borrowing money without adequate measures to curb spending or increase revenue. This scenario, dubbed "debasement", could significantly hamper the government's ability to function effectively. The ripple effects of the US debt situation extend far beyond government offices. Financial markets are reacting, with investors seeking hedges against a potential weakening of the US dollar. This is evident in the rising prices of traditional safe-haven assets like gold, which has witnessed a 6% increase in the past six months. Bitcoin, often touted as a hedge against inflation and currency devaluation, has also seen a remarkable surge in 2024, reaching its highest level since November 2021. While factors like the recent approval of spot Bitcoin ETFs and the upcoming Bitcoin halving event contribute to this enthusiasm, the underlying concern regarding the US debt situation plays a significant role. The story doesn't end there. The US continues to grapple with high levels of government spending, with military expenditure remaining robust at 9.3% of GDP over the past four years. This raises crucial questions about the sustainability of such spending levels, particularly against the backdrop of a burgeoning debt burden. Projections suggest a concerning shift in budgetary priorities within the next five years. The US could be spending more on debt interest payments than on defence. This implies a potential for limited resources to invest in other critical areas, further highlighting the situation's complexities. The looming possibility of a partial government shutdown in March due to budget disagreements adds another layer of uncertainty to this already complex issue. As the US navigates this challenging fiscal landscape, addressing the growing debt and implementing sustainable spending strategies remain crucial steps towards ensuring long-term economic stability.

America's mounting debt: A cause for concern?

In a peek&nbsp;into the Federal Reserve's recent discussions, the minutes of the January meeting have unveiled a predominant concern among policymakers about the potential risks associated with cutting interest rates too soon. <o:p></o:p>

The minutes, released on Wednesday, indicated a broad uncertainty regarding the duration of maintaining current borrowing costs, with a focus on steering inflation back to the US central bank's target of 2 per cent.<o:p></o:p>

According to the minutes, the uncertainty revolves around the timeframe required for a restrictive monetary policy stance to bring inflation back on track. <o:p></o:p>

Most participants expressed apprehension about the risks associated with a swift easing of policy. <o:p></o:p>

While the majority was cautious about moving too quickly, a couple of participants raised concerns about the downside risks linked to an overly restrictive stance for an extended period.<o:p></o:p>

Market reactions were evident, with US stocks initially trading lower upon the release of the minutes before later recovering ground in the session. <o:p></o:p>

The US dollar remained relatively stable against a basket of currencies, and US Treasury yields experienced an uptick.<o:p></o:p>

The minutes echo recent statements from Fed policymakers, highlighting a measured approach towards anticipated rate cuts expected to begin later this year. <o:p></o:p>

Richmond Fed President Thomas Barkin, speaking on SiriusXM, highlighted concerns about persistent inflation in service industries and housing. <o:p></o:p>

He mentioned that the latest data, reflecting strong job growth and higher-than-anticipated inflation, complicates any decision on rate cuts, making it "harder".<o:p></o:p>

Federal Reserve officials, including Vice Chair Philip Jefferson and Governors Lisa Cook and Christopher Waller, are expected to delve deeper into the discussion on rate cuts in upcoming speeches on Thursday. <o:p></o:p>

The overall sentiment conveyed by the minutes and subsequent speeches is a cautious approach, with concerns about moving too quickly amid uncertainties.<o:p></o:p>

Quincy Krosby, Chief Global Strategist at LPL Financial, emphasised the Fed's valid concerns, especially given the recent uptick in prices. <o:p></o:p>

Krosby suggested that the Fed is wary of rushing decisions before confidently addressing and curbing inflation.<o:p></o:p>

The minutes also shed light on the Fed's considerations regarding the balance sheet policy. "Many participants" suggested initiating "in-depth" discussions on this matter at the March policy meeting, indicating the complexity of decisions on when and how to cease reducing the size of the Fed's balance sheet.<o:p></o:p>

As the economic landscape continues to evolve, investors in contracts tied to the Fed's benchmark overnight interest rate appear to anticipate a reduction in borrowing costs starting in June. <o:p></o:p>

The minutes acknowledged the mixed picture since the end of January, with Treasury yields rising while stocks continued their march to record highs.<o:p></o:p>

In the aftermath of the minutes, Ryan Sweet, Chief US Economist at Oxford Economics, questioned the Fed's concern about cutting rates too soon, deeming it "odd." <o:p></o:p>

Sweet suggested that risks might be tilting towards overly tight policies that could potentially weigh on the economy if signs of deterioration are not addressed promptly.<o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

In a peek into the Federal Reserve's recent discussions, the minutes of the January meeting have unveiled a predominant concern among policymakers about the potential risks associated with cutting interest rates too soon.

In a peek into the Federal Reserve's recent discussions, the minutes of the January meeting have unveiled a predominant concern among policymakers about the potential risks associated with cutting interest rates too soon. The minutes, released on Wednesday, indicated a broad uncertainty regarding the duration of maintaining current borrowing costs, with a focus on steering inflation back to the US central bank's target of 2 per cent. According to the minutes, the uncertainty revolves around the timeframe required for a restrictive monetary policy stance to bring inflation back on track. Most participants expressed apprehension about the risks associated with a swift easing of policy. While the majority was cautious about moving too quickly, a couple of participants raised concerns about the downside risks linked to an overly restrictive stance for an extended period. Market reactions were evident, with US stocks initially trading lower upon the release of the minutes before later recovering ground in the session. The US dollar remained relatively stable against a basket of currencies, and US Treasury yields experienced an uptick. The minutes echo recent statements from Fed policymakers, highlighting a measured approach towards anticipated rate cuts expected to begin later this year. Richmond Fed President Thomas Barkin, speaking on SiriusXM, highlighted concerns about persistent inflation in service industries and housing. He mentioned that the latest data, reflecting strong job growth and higher-than-anticipated inflation, complicates any decision on rate cuts, making it "harder". Federal Reserve officials, including Vice Chair Philip Jefferson and Governors Lisa Cook and Christopher Waller, are expected to delve deeper into the discussion on rate cuts in upcoming speeches on Thursday. The overall sentiment conveyed by the minutes and subsequent speeches is a cautious approach, with concerns about moving too quickly amid uncertainties. Quincy Krosby, Chief Global Strategist at LPL Financial, emphasised the Fed's valid concerns, especially given the recent uptick in prices. Krosby suggested that the Fed is wary of rushing decisions before confidently addressing and curbing inflation. The minutes also shed light on the Fed's considerations regarding the balance sheet policy. "Many participants" suggested initiating "in-depth" discussions on this matter at the March policy meeting, indicating the complexity of decisions on when and how to cease reducing the size of the Fed's balance sheet. As the economic landscape continues to evolve, investors in contracts tied to the Fed's benchmark overnight interest rate appear to anticipate a reduction in borrowing costs starting in June. The minutes acknowledged the mixed picture since the end of January, with Treasury yields rising while stocks continued their march to record highs. In the aftermath of the minutes, Ryan Sweet, Chief US Economist at Oxford Economics, questioned the Fed's concern about cutting rates too soon, deeming it "odd." Sweet suggested that risks might be tilting towards overly tight policies that could potentially weigh on the economy if signs of deterioration are not addressed promptly. (With inputs from Reuters)

Federal Reserve treads cautiously on rate cuts amid economic uncertainty

<o:p></o:p>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy.<o:p></o:p>

US dollar hits 3-month high on strong inflation data, surpasses 150 yen mark<o:p></o:p>

The US dollar surged to three-month highs on Tuesday, propelled by robust inflation data that exceeded economists' expectations for January.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/us-dollar-hits-3-month-high-on-strong-inflation-data-surpasses-150-yen-mark-690078">Read more here</a> <o:p></o:p>

SpaceX fined after worker injury, records reveal history of safety concerns<o:p></o:p>

Elon Musk's SpaceX was fined $3,600 this month following an incident at its Washington state site that nearly resulted in an amputation, as per inspection records reviewed by Reuters.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/spacex-fined-after-worker-injury-records-reveal-history-of-safety-concerns-690084">Read more here</a><o:p></o:p>

Nvidia on the brink of overtaking Alphabet in market after Amazon<o:p></o:p>

Nvidia, the leading AI chipmaker, is on the brink of surpassing Alphabet as the third most valuable company on Wall Street, after overtaking Amazon's market capitalisation for the first time in two decades, according to Reuters.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/nvidia-on-the-brink-of-overtaking-alphabet-in-market-after-amazon-690089">Read more here </a><o:p></o:p>

Barclays faces lawsuit over discrimination allegations from vice president<o:p></o:p>

A vice president at Barclays has filed a lawsuit against the British bank, seeking approximately $290,000, alleging racial, religious, and gender discrimination.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/barclays-faces-lawsuit-over-discrimination-allegations-from-vice-president-690094">Read more here </a><o:p></o:p>

Walmart in advanced talks to acquire Vizio for over $2 bn, boosting TV market control<o:p></o:p>

Retail giant Walmart is reportedly in advanced discussions to acquire smart-television manufacturer Vizio for a sum exceeding $2 billion, as reported by the Wall Street Journal on Tuesday.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/walmart-in-advanced-talks-to-acquire-vizio-for-over-2-bn-boosting-tv-market-control-690100">Read more here </a><o:p></o:p>

Rising rents propel US inflation; rate cuts still anticipated in 2024<o:p></o:p>

The latest data from the Labour Department revealed a higher-than-anticipated increase in US consumer prices in January, driven primarily by a surge in the cost of rental housing.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/rising-rents-propel-us-inflation-rate-cuts-still-anticipated-in-2024-690133">Read more here </a><o:p></o:p>

Disneyland character performers announce plans to unionise, seeking better benefits<o:p></o:p>

Character performers at Disneyland, embodying beloved figures like Mickey Mouse, Donald Duck, and Goofy, have disclosed intentions to join the Actors' Equity Association, a union representing professionals in live theatrical performance.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/disneyland-character-performers-announce-plans-to-unionise-seeking-better-benefits-690139">Read more here </a><o:p></o:p>

China's declining birth rate puts teachers' jobs at risk: Millions face uncertain future by 2035<o:p></o:p>

In the wake of China's plummeting birth rate, the future of teaching, once considered a steadfast career choice in the nation, is now cast in uncertainty, the South China Morning Post (SCMP) reported.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/chinas-declining-birth-rate-puts-teachers-jobs-at-risk-millions-face-uncertain-future-by-2035-690148">Read more here </a><o:p></o:p>

Love is in the air, but is it in your budget? Exploring the economic impact of Valentine's Day<o:p></o:p>

While millions prepare to celebrate love with chocolates, cards, and cosy dinners, the question arises: how much does this day of affection truly cost the economy, and is the pressure to spend worth it?

<a href="https://www.wionews.com/business-economy/love-is-in-the-air-but-is-it-in-your-budget-exploring-the-economic-impact-of-valentines-day-690154">Read more here </a><o:p></o:p>

Toyota announces leadership changes at Daihatsu following safety test scandal

In response to the revelation of rigged collision safety-tests, Toyota Motor Corp announced significant leadership changes within Daihatsu Motor, with both the president and chairman set to step down.

<a href="https://www.wionews.com/business-economy/toyota-announces-leadership-changes-at-daihatsu-following-safety-test-scandal-690175">Read more here</a>

FTC's antitrust lawsuit against Amazon scheduled for October 2026 trial

A US federal judge has set an October 2026 trial date for the Federal Trade Commission's (FTC) antitrust lawsuit against Amazon.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/ftcs-antitrust-lawsuit-against-amazon-scheduled-for-october-2026-trial-690168">Read more here</a><o:p></o:p>

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. US dollar hits 3-month high on strong inflation data, surpasses 150 yen mark The US dollar surged to three-month highs on Tuesday, propelled by robust inflation data that exceeded economists' expectations for January.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. US dollar hits 3-month high on strong inflation data, surpasses 150 yen mark The US dollar surged to three-month highs on Tuesday, propelled by robust inflation data that exceeded economists' expectations for January. Read more here SpaceX fined after worker injury, records reveal history of safety concerns Elon Musk's SpaceX was fined $3,600 this month following an incident at its Washington state site that nearly resulted in an amputation, as per inspection records reviewed by Reuters. Read more here Nvidia on the brink of overtaking Alphabet in market after Amazon Nvidia, the leading AI chipmaker, is on the brink of surpassing Alphabet as the third most valuable company on Wall Street, after overtaking Amazon's market capitalisation for the first time in two decades, according to Reuters. Read more here Barclays faces lawsuit over discrimination allegations from vice president A vice president at Barclays has filed a lawsuit against the British bank, seeking approximately $290,000, alleging racial, religious, and gender discrimination. Read more here Walmart in advanced talks to acquire Vizio for over $2 bn, boosting TV market control Retail giant Walmart is reportedly in advanced discussions to acquire smart-television manufacturer Vizio for a sum exceeding $2 billion, as reported by the Wall Street Journal on Tuesday. Read more here Rising rents propel US inflation; rate cuts still anticipated in 2024 The latest data from the Labour Department revealed a higher-than-anticipated increase in US consumer prices in January, driven primarily by a surge in the cost of rental housing. Read more here Disneyland character performers announce plans to unionise, seeking better benefits Character performers at Disneyland, embodying beloved figures like Mickey Mouse, Donald Duck, and Goofy, have disclosed intentions to join the Actors' Equity Association, a union representing professionals in live theatrical performance. Read more here China's declining birth rate puts teachers' jobs at risk: Millions face uncertain future by 2035 In the wake of China's plummeting birth rate, the future of teaching, once considered a steadfast career choice in the nation, is now cast in uncertainty, the South China Morning Post (SCMP) reported. Read more here Love is in the air, but is it in your budget? Exploring the economic impact of Valentine's Day While millions prepare to celebrate love with chocolates, cards, and cosy dinners, the question arises: how much does this day of affection truly cost the economy, and is the pressure to spend worth it? Read more here Toyota announces leadership changes at Daihatsu following safety test scandal In response to the revelation of rigged collision safety-tests, Toyota Motor Corp announced significant leadership changes within Daihatsu Motor, with both the president and chairman set to step down. Read more here FTC's antitrust lawsuit against Amazon scheduled for October 2026 trial A US federal judge has set an October 2026 trial date for the Federal Trade Commission's (FTC) antitrust lawsuit against Amazon. Read more here

WION Business Wrap | US dollar’s 3-month high, Nvidia’s rising market value and more

The yen found itself hovering near a 10-week low on Friday, while the dollar continued its upward trajectory towards a fourth consecutive weekly advance. <o:p></o:p>

According to a Reuters report, the currency market witnessed adjustments as traders recalibrated their expectations concerning the timing of interest rate changes by the Bank of Japan (BOJ) and the potential for rate cuts by the Federal Reserve.<o:p></o:p>

The yen, barely flinching after Japanese Finance Minister Shunichi Suzuki's statement that he was "watching FX moves carefully," remained little changed at 149.315 per dollar in early Asian trading. <o:p></o:p>

The yen's lack of response to Suzuki's warning underscores the nuanced considerations at play in the currency market. <o:p></o:p>

Meanwhile, BOJ Deputy Governor Shinichi Uchida's recent remarks contributed to the yen's weakened position, stating that it is "hard to imagine" a rapid increase in rates even after ending the negative interest rate policy.<o:p></o:p>

In the realm of the dollar, the dollar index, measuring the currency against six major peers, stood steady at 104.15. <o:p></o:p>

The dollar's resilience was evident as it gained 0.1 per cent following fresh data pointing to the robustness of the US labour market. <o:p></o:p>

This follows a week where the dollar index has climbed 0.18 per cent, propelled by strong monthly payrolls data and a hawkish stance from Fed Chair Jerome Powell. <o:p></o:p>

Traders, once anticipating early Fed rate cuts, now lay just 16.5 per cent odds for a rate cut at the Fed's next policy meeting in March, a significant shift from 65.9 per cent odds a month ago.<o:p></o:p>

Reuters cited Richard Franulovich, Westpac's head of foreign exchange strategy, who predicts a potential rally toward 105.50 for the dollar index, emphasising latent upside fuel for the US currency. <o:p></o:p>

He notes that while pricing for the March Federal Open Market Committee (FOMC) has been reduced, there is still potential for a USD rally in subsequent FOMC meetings. <o:p></o:p>

Franulovich anticipates US resilience extending well into 2024, contributing to a potentially bumpy disinflation last mile.<o:p></o:p>

Turning attention to other currencies, the euro remained relatively stable at $1.0774, and the sterling showed little movement at $1.2619. Both currencies demonstrated resilience amid efforts by the European Central Bank and Bank of England officials to counter market expectations of early rate reductions. <o:p></o:p>

New Zealand's dollar, on the other hand, gained 0.34 per cent to $0.6117, supported by bets for a delayed start to Reserve Bank rate cuts or the potential for further hikes, following stronger-than-forecast job market data.<o:p></o:p>

In the realm of cryptocurrency, bitcoin traded little changed at around $45,300, maintaining its position as a significant player in the ever-evolving financial landscape. <o:p></o:p>

(With inputs from Reuters)<o:p></o:p>

The yen found itself hovering near a 10-week low on Friday, while the dollar continued its upward trajectory towards a fourth consecutive weekly advance. According to a Reuters report, the currency market witnessed adjustments as traders recalibrated their expectations concerning the timing of interest rate changes by the Bank of Japan (BOJ) and the potential for rate cuts by the Federal Reserve.

The yen found itself hovering near a 10-week low on Friday, while the dollar continued its upward trajectory towards a fourth consecutive weekly advance. According to a Reuters report, the currency market witnessed adjustments as traders recalibrated their expectations concerning the timing of interest rate changes by the Bank of Japan (BOJ) and the potential for rate cuts by the Federal Reserve. The yen, barely flinching after Japanese Finance Minister Shunichi Suzuki's statement that he was "watching FX moves carefully," remained little changed at 149.315 per dollar in early Asian trading. The yen's lack of response to Suzuki's warning underscores the nuanced considerations at play in the currency market. Meanwhile, BOJ Deputy Governor Shinichi Uchida's recent remarks contributed to the yen's weakened position, stating that it is "hard to imagine" a rapid increase in rates even after ending the negative interest rate policy. In the realm of the dollar, the dollar index, measuring the currency against six major peers, stood steady at 104.15. The dollar's resilience was evident as it gained 0.1 per cent following fresh data pointing to the robustness of the US labour market. This follows a week where the dollar index has climbed 0.18 per cent, propelled by strong monthly payrolls data and a hawkish stance from Fed Chair Jerome Powell. Traders, once anticipating early Fed rate cuts, now lay just 16.5 per cent odds for a rate cut at the Fed's next policy meeting in March, a significant shift from 65.9 per cent odds a month ago. Reuters cited Richard Franulovich, Westpac's head of foreign exchange strategy, who predicts a potential rally toward 105.50 for the dollar index, emphasising latent upside fuel for the US currency. He notes that while pricing for the March Federal Open Market Committee (FOMC) has been reduced, there is still potential for a USD rally in subsequent FOMC meetings. Franulovich anticipates US resilience extending well into 2024, contributing to a potentially bumpy disinflation last mile. Turning attention to other currencies, the euro remained relatively stable at $1.0774, and the sterling showed little movement at $1.2619. Both currencies demonstrated resilience amid efforts by the European Central Bank and Bank of England officials to counter market expectations of early rate reductions. New Zealand's dollar, on the other hand, gained 0.34 per cent to $0.6117, supported by bets for a delayed start to Reserve Bank rate cuts or the potential for further hikes, following stronger-than-forecast job market data. In the realm of cryptocurrency, bitcoin traded little changed at around $45,300, maintaining its position as a significant player in the ever-evolving financial landscape. (With inputs from Reuters)

Yen nears 10-week low, dollar strengthens as traders adjust rate expectations

The US dollar hit a five-month low against the euro and a basket of currencies on Wednesday, driven by expectations that the Federal Reserve might consider cutting interest rates. &nbsp;

The dollar index, measuring the U.S. currency against six others, fell 0.48 per cent to 100.98, the lowest since July 27. Despite the holiday season resulting in reduced trading activity and heightened volatility due to low liquidity, the dollar is set for a 2.45 per cent drop in 2023, marking a shift from two years of robust gains driven by anticipated and actual interest rate hikes by the Fed to combat inflation.&nbsp;

The Federal Reserve is currently perceived as adopting a dovish stance relative to other major central banks, contributing to market expectations of potential rate cuts. The shift in sentiment occurred after Fed Chairman Jerome Powell unexpectedly expressed a dovish outlook at the central bank's December meeting. &nbsp;

Policymakers projected a 75-basis-point easing in 2024. In contrast, central banks like the European Central Bank (ECB) have maintained a "higher for longer" stance, while the Bank of Japan has signalled a potential end to its negative rate policy. &nbsp;

The euro saw a 0.54 per cent increase to $1.1102, reaching its highest level since July 27. For the year, the single currency is poised to gain 3.61 per cent. Similarly, the British pound rose by 0.56 per cent to $1.2793, hitting $1.2802 earlier in the session, the highest since August 10. Sterling is on track for a 5.79 per cent return in 2023. &nbsp;

The Japanese yen experienced a 0.35 per cent decline to 141.89 against the dollar, but the dollar is set for an 8.22 per cent gain for the year. The Bank of Japan's recent announcement included a reduction in the amount of bonds purchased in the January-March quarter, and policymakers emphasized the need to maintain the current policy while hinting at future discussions on an exit from massive stimulus.&nbsp;

Meanwhile, the Australian and New Zealand dollars reached more than five-month highs during the session, with the Australian dollar rising 0.21 per cent to $0.6841, and the kiwi gaining 0.10 per cent at $0.6335. &nbsp;

(With inputs from Reuters)&nbsp;

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The US dollar hit a five-month low against the euro and a basket of currencies on Wednesday, driven by expectations that the Federal Reserve might consider cutting interest rates.

The US dollar hit a five-month low against the euro and a basket of currencies on Wednesday, driven by expectations that the Federal Reserve might consider cutting interest rates. The dollar index, measuring the U.S. currency against six others, fell 0.48 per cent to 100.98, the lowest since July 27. Despite the holiday season resulting in reduced trading activity and heightened volatility due to low liquidity, the dollar is set for a 2.45 per cent drop in 2023, marking a shift from two years of robust gains driven by anticipated and actual interest rate hikes by the Fed to combat inflation. The Federal Reserve is currently perceived as adopting a dovish stance relative to other major central banks, contributing to market expectations of potential rate cuts. The shift in sentiment occurred after Fed Chairman Jerome Powell unexpectedly expressed a dovish outlook at the central bank's December meeting. Policymakers projected a 75-basis-point easing in 2024. In contrast, central banks like the European Central Bank (ECB) have maintained a "higher for longer" stance, while the Bank of Japan has signalled a potential end to its negative rate policy. The euro saw a 0.54 per cent increase to $1.1102, reaching its highest level since July 27. For the year, the single currency is poised to gain 3.61 per cent. Similarly, the British pound rose by 0.56 per cent to $1.2793, hitting $1.2802 earlier in the session, the highest since August 10. Sterling is on track for a 5.79 per cent return in 2023. The Japanese yen experienced a 0.35 per cent decline to 141.89 against the dollar, but the dollar is set for an 8.22 per cent gain for the year. The Bank of Japan's recent announcement included a reduction in the amount of bonds purchased in the January-March quarter, and policymakers emphasized the need to maintain the current policy while hinting at future discussions on an exit from massive stimulus. Meanwhile, the Australian and New Zealand dollars reached more than five-month highs during the session, with the Australian dollar rising 0.21 per cent to $0.6841, and the kiwi gaining 0.10 per cent at $0.6335. (With inputs from Reuters) WATCH WION LIVE HERE

Dollar slides to 5-month low against Euro as Fed signals possible rate cuts

WION's&nbsp;Business Desk brings you this daily round up of global stories from the world of business and economy.&nbsp;<o:p></o:p>

Guyana-Venezuela tensions: How oil discovery revived&nbsp;Essequibo&nbsp;crisis<o:p></o:p>

On December 15, Guyana and Venezuela agreed to resolve the Essequibo dispute without the use of force. With that, the threat of a military conflict is over - at least for now.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/guyana-venezuela-tensions-how-oil-discovery-revived-essequibo-crisis-674201">Read more here</a><o:p></o:p>

Former EU Commission President Jacques Delors, architect of euro project, dies at 98<o:p></o:p>

Jacques Delors, a key architect of the European Union's historic single currency project, died at 98 on Wednesday. <o:p></o:p>

<a href="https://www.wionews.com/business-economy/former-eu-commission-president-jacques-delors-architect-of-euro-project-dies-at-98-674182">Read more here</a><o:p></o:p>

Dollar slides to 5-month low against Euro as Fed signals possible rate cuts<o:p></o:p>

The US dollar hit a five-month low against the euro and a basket of currencies on Wednesday, driven by expectations that the Federal Reserve might consider cutting interest rates. &nbsp;<o:p></o:p>

<a href="https://www.wionews.com/business-economy/dollar-slides-to-5-month-low-against-euro-as-fed-signals-possible-rate-cuts-674246">Read more here</a><o:p></o:p>

General Motors sues San Francisco for $121 mn over alleged tax overcharge<o:p></o:p>

General Motors (GM) has initiated legal proceedings against the city of San Francisco, seeking to recover over $100 million, alleging an unjustly inflated tax bill. <o:p></o:p>

<a href="https://www.wionews.com/business-economy/general-motors-sues-san-francisco-for-121-mn-over-alleged-tax-overcharge-674218">Read more here</a><o:p></o:p>

Amazon Prime Video subscribers will soon see ads unless they pay extra in these countries<o:p></o:p>

Amazon's Prime Video subscribers will no longer enjoy the ad-free experience unless they pay an additional $3.83 (£2.99) in some countries.<o:p></o:p>

<a href="https://www.wionews.com/trending/amazon-prime-video-subscribers-will-no-longer-have-an-ad-free-experience-unless-they-pay-extra-674272">Read more here</a>

Turkey raises minimum wage by 49pc amid soaring inflation<o:p></o:p>

In a bid to alleviate the mounting pressure of soaring living costs, Turkey has announced a substantial 49 per cent increase in the minimum wage for the upcoming year.&nbsp;<o:p></o:p>

<a href="https://www.wionews.com/business-economy/turkey-raises-minimum-wage-by-49pc-amid-soaring-inflation-674277">Read more here</a><o:p></o:p>

Apple wins reprieve in smartwatch battle as appeals court lifts import ban<o:p></o:p>

Apple has secured a temporary victory in its legal tussle over smartwatches, as a US appeals court temporarily lifted a government commission's import ban imposed in a patent dispute with medical technology firm Masimo.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/apple-wins-reprieve-in-smartwatch-battle-as-appeals-court-lifts-import-ban-674287">Read more here</a><o:p></o:p>

Maersk resumes Suez Canal routes amid global shipping concerns<o:p></o:p>

Denmark's Maersk has announced the scheduling of numerous container vessels to traverse the Suez Canal and the Red Sea in the coming days, signalling a potential return to normalcy for global shipping firms.<o:p></o:p>

<a href="https://www.wionews.com/business-economy/maersk-resumes-suez-canal-routes-amid-global-shipping-concerns-674300">Read more here</a><o:p></o:p>

China unveils plan to boost domestic demand, technological self-reliance<o:p></o:p>

China has set forth an economic agenda aimed at expanding domestic demand, ensuring a swift recovery, and promoting stable growth, according to an interim report on China's 14th five-year plan published by parliament on Wednesday. &nbsp;<o:p></o:p>

<a href="https://www.wionews.com/business-economy/china-unveils-plan-to-boost-domestic-demand-technological-self-reliance-674302">Read more here</a><o:p></o:p>

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WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Guyana-Venezuela tensions: How oil discovery revived Essequibo crisis On December 15, Guyana and Venezuela agreed to resolve the Essequibo dispute without the use of force.

WION's Business Desk brings you this daily round up of global stories from the world of business and economy. Guyana-Venezuela tensions: How oil discovery revived Essequibo crisis On December 15, Guyana and Venezuela agreed to resolve the Essequibo dispute without the use of force. With that, the threat of a military conflict is over - at least for now. Read more here Former EU Commission President Jacques Delors, architect of euro project, dies at 98 Jacques Delors, a key architect of the European Union's historic single currency project, died at 98 on Wednesday. Read more here Dollar slides to 5-month low against Euro as Fed signals possible rate cuts The US dollar hit a five-month low against the euro and a basket of currencies on Wednesday, driven by expectations that the Federal Reserve might consider cutting interest rates. Read more here General Motors sues San Francisco for $121 mn over alleged tax overcharge General Motors (GM) has initiated legal proceedings against the city of San Francisco, seeking to recover over $100 million, alleging an unjustly inflated tax bill. Read more here Amazon Prime Video subscribers will soon see ads unless they pay extra in these countries Amazon's Prime Video subscribers will no longer enjoy the ad-free experience unless they pay an additional $3.83 (£2.99) in some countries. Read more here Turkey raises minimum wage by 49pc amid soaring inflation In a bid to alleviate the mounting pressure of soaring living costs, Turkey has announced a substantial 49 per cent increase in the minimum wage for the upcoming year. Read more here Apple wins reprieve in smartwatch battle as appeals court lifts import ban Apple has secured a temporary victory in its legal tussle over smartwatches, as a US appeals court temporarily lifted a government commission's import ban imposed in a patent dispute with medical technology firm Masimo. Read more here Maersk resumes Suez Canal routes amid global shipping concerns Denmark's Maersk has announced the scheduling of numerous container vessels to traverse the Suez Canal and the Red Sea in the coming days, signalling a potential return to normalcy for global shipping firms. Read more here China unveils plan to boost domestic demand, technological self-reliance China has set forth an economic agenda aimed at expanding domestic demand, ensuring a swift recovery, and promoting stable growth, according to an interim report on China's 14th five-year plan published by parliament on Wednesday. Read more here WATCH WION LIVE HERE

WION Business Wrap | Guyana-Venezuela tensions, The Dollar’s 5-month low, General Motors & more

The Indian currency performed extremely well in 2023. This is despite the rupee falling to its lowest level of 83.395 (closing level) against the U.S. dollar. Watch this video to find out how.

Indian rupee witnesses least volatility in nearly three decades against the US dollar in 2023

The U.S. dollar, once the undisputed currency reserve leader, faces a waning dominance. The latest IMF data reveals a decline in the dollar's share to its lowest in the September quarter since last year, marking a significant turning point in global currency reserves.

Dollar reserves fall to lowest since 4th quarter of 2022

For a very long time, the US dollar has dominated international markets. It still does so, although, during the past 20 years, the US economy has produced a decreasing percentage of the world's production. The latest International Monetary Fund's (IMF) data shows a decline in the dollar's share in global central banks' foreign currency reserves. The data shows the dollar's share is down in the September quarter to the lowest since the final three months of last year.

Dollar reserves fall to lowest in a year

As we head into 2024, the dynamics of geopolitics are at the core of global markets. 
 
So far, America has imposed sanctions against countries to cut them off from the global payment systems and dollars. 
 
Many countries, including Russia, are looking at alternatives to the dollar. 
 
For a very long time, the US dollar has dominated international markets. It still does so, although, during the past 20 years, the US economy has produced a decreasing percentage of the world's production. 
 
Central banks are no longer keeping as much of the US dollar in reserves as they formerly did, even though the currency is still far more prevalent in international commerce, international debt, and non-bank borrowing than it is in the US share of trade, bond issuance, and international borrowing and lending. 
 
Dollar demand waning? 
 
The latest International Monetary Fund's (IMF) data shows a decline in the dollar's share in global central banks' foreign currency reserves.&nbsp; 
 
The data shows the dollar's share is down in the September quarter to the lowest since the final three months of last year. 
 
The extensive use of dollars in international commerce, particularly for commodities and energy, has helped the greenback over the years. 
 
The dollar's dominance among trade partners has allowed the US to sustain budget deficits and control funding costs by directing cash into US government bonds.&nbsp; 
 
Additionally, it helps US businesses since firms often find it less expensive to borrow money due to the extensive usage of dollars in international commerce, particularly for commodities and energy. 
 
The dollar has been the preferred reserve currency for most of the world's central banks.&nbsp; 
 
However, the dollar has progressively lost dominance since 2000, when its share was above 70%. &nbsp; 
 
The US currency's share is down to 59.2% in the September quarter, marking the lowest since it fell below 60% last year. 
 
The euro's share in the reserves fell slightly while the Japanese yen rose. The shares of the Chinese yuan, the British pound, the Australian and Canadian dollars, and the Swiss franc were changed only slightly. 
 
A group of "other currencies." including the rupee, rose in the previous quarter.&nbsp; 
 
What does it mean to global trade and currencies? 
 
This reflects the global mood towards the dollar and the US. 
 
Most countries are slowly but surely moving away from dollar-denominated trade.&nbsp; 
 
Instead, they seek to settle trade in their own currencies. India, for example, has set up a rupee-trade mechanism for trade settlements.&nbsp; 
 
China has also pushed for trade settlements in the yuan. These alternative trade settlement mechanisms are slowly gaining traction. 
 
But the dollar's share is still over 50%.&nbsp; 
 
Still, the shift away is clear and noticeable. 
 
Dollar lacks competition 
 
Despite a two-decade drop in its proportion of global foreign currency reserves, the US dollar is still utilised more than all other currencies combined. 
 
A new IMF working paper shows that the diminished significance of the US dollar has not been balanced by rises in the proportions of the other traditional reserve currencies - the euro, yen, and pound.&nbsp; 
 
Furthermore, even while the proportion of reserves kept in the renminbi has increased somewhat, this only makes up 25% of the recent move away from dollars, partially attributable to China's highly tight capital account.&nbsp; 
 
An update to the data in the IMF's working paper reveals that about one-third of the world's renminbi reserves were held by one nation, Russia. 
 
However, three-quarters of the shift away from dollars is accounted for by the currencies of smaller economies that haven't typically played a significant role in reserve portfolios, such as the South Korean won, the Swedish krona, and the Australian and Canadian dollars. 
 
The cost of employing credit derivatives to guarantee against default is a measure of economic risk premium, and a regression study of global reserve currency shares indicates that a greater premium deters a currency's position in global reserves.&nbsp; 
 
Holders prefer the currencies of nations with reputable governments, stable economies, and strong financial systems. 
 
So, it will take a long time for other currencies to be able to overshadow the greenback.

As we head into 2024, the dynamics of geopolitics are at the core of global markets. So far, America has imposed sanctions against countries to cut them off from the global payment systems and dollars.

As we head into 2024, the dynamics of geopolitics are at the core of global markets. So far, America has imposed sanctions against countries to cut them off from the global payment systems and dollars. Many countries, including Russia, are looking at alternatives to the dollar. For a very long time, the US dollar has dominated international markets. It still does so, although, during the past 20 years, the US economy has produced a decreasing percentage of the world's production. Central banks are no longer keeping as much of the US dollar in reserves as they formerly did, even though the currency is still far more prevalent in international commerce, international debt, and non-bank borrowing than it is in the US share of trade, bond issuance, and international borrowing and lending. Dollar demand waning? The latest International Monetary Fund's (IMF) data shows a decline in the dollar's share in global central banks' foreign currency reserves. The data shows the dollar's share is down in the September quarter to the lowest since the final three months of last year. The extensive use of dollars in international commerce, particularly for commodities and energy, has helped the greenback over the years. The dollar's dominance among trade partners has allowed the US to sustain budget deficits and control funding costs by directing cash into US government bonds. Additionally, it helps US businesses since firms often find it less expensive to borrow money due to the extensive usage of dollars in international commerce, particularly for commodities and energy. The dollar has been the preferred reserve currency for most of the world's central banks. However, the dollar has progressively lost dominance since 2000, when its share was above 70%. The US currency's share is down to 59.2% in the September quarter, marking the lowest since it fell below 60% last year. The euro's share in the reserves fell slightly while the Japanese yen rose. The shares of the Chinese yuan, the British pound, the Australian and Canadian dollars, and the Swiss franc were changed only slightly. A group of "other currencies." including the rupee, rose in the previous quarter. What does it mean to global trade and currencies? This reflects the global mood towards the dollar and the US. Most countries are slowly but surely moving away from dollar-denominated trade. Instead, they seek to settle trade in their own currencies. India, for example, has set up a rupee-trade mechanism for trade settlements. China has also pushed for trade settlements in the yuan. These alternative trade settlement mechanisms are slowly gaining traction. But the dollar's share is still over 50%. Still, the shift away is clear and noticeable. Dollar lacks competition Despite a two-decade drop in its proportion of global foreign currency reserves, the US dollar is still utilised more than all other currencies combined. A new IMF working paper shows that the diminished significance of the US dollar has not been balanced by rises in the proportions of the other traditional reserve currencies - the euro, yen, and pound. Furthermore, even while the proportion of reserves kept in the renminbi has increased somewhat, this only makes up 25% of the recent move away from dollars, partially attributable to China's highly tight capital account. An update to the data in the IMF's working paper reveals that about one-third of the world's renminbi reserves were held by one nation, Russia. However, three-quarters of the shift away from dollars is accounted for by the currencies of smaller economies that haven't typically played a significant role in reserve portfolios, such as the South Korean won, the Swedish krona, and the Australian and Canadian dollars. The cost of employing credit derivatives to guarantee against default is a measure of economic risk premium, and a regression study of global reserve currency shares indicates that a greater premium deters a currency's position in global reserves. Holders prefer the currencies of nations with reputable governments, stable economies, and strong financial systems. So, it will take a long time for other currencies to be able to overshadow the greenback.

Is the dollar's status as a global reserve currency at risk?

In a move to curb US dollar hoarding and counter an anticipated devaluation, Argentina's central bank has imposed restrictions on the foreign currency holdings of commercial lenders, Bloomberg reported.&nbsp;

The decree, published on Thursday, dictates that banks may not hold more than the lowest recorded amount between October 12 and December 6. The measure, effective immediately and valid until the year-end, aims to compel banks to unwind their existing dollar portfolios, thereby increasing the supply in the official exchange market. &nbsp;

This move is seen as a proactive step to support the peso as investors brace for a potential 27 per cent drop in the currency's value on Monday, with expectations of a 44 per cent devaluation under the incoming President, Javier Milei.&nbsp;

Bloomberg sources suggest that the new regulation forces banks to liquidate their current dollar holdings, potentially offering the central bank a much-needed boost. The measure aligns with Milei's commitment to address the currency issue, signalling a departure from the current administration's policies. &nbsp;

The Central Bank's spokespersons clarified that the objective is to prevent banks from increasing their dollar holdings on the eve of Milei's inauguration. Despite the silence from Milei's team, the move underscores the urgency felt within the government to stabilise the economy and manage the impending devaluation.&nbsp;

Milei's team has hinted at maintaining currency controls temporarily while&nbsp;seemingly deferring&nbsp;plans to scrap the peso altogether. The incoming administration faces the challenge of sustaining the peso's value amid economic uncertainties. &nbsp;

Market analysts suggest that the current exchange rate is unsustainable, emphasising the need for decisive measures to avert a deeper economic crisis.&nbsp;

(With inputs from Bloomberg)&nbsp;

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In a move to curb US dollar hoarding and counter an anticipated devaluation, Argentina's central bank has imposed restrictions on the foreign currency holdings of commercial lenders, Bloomberg reported.

In a move to curb US dollar hoarding and counter an anticipated devaluation, Argentina's central bank has imposed restrictions on the foreign currency holdings of commercial lenders, Bloomberg reported. The decree, published on Thursday, dictates that banks may not hold more than the lowest recorded amount between October 12 and December 6. The measure, effective immediately and valid until the year-end, aims to compel banks to unwind their existing dollar portfolios, thereby increasing the supply in the official exchange market. This move is seen as a proactive step to support the peso as investors brace for a potential 27 per cent drop in the currency's value on Monday, with expectations of a 44 per cent devaluation under the incoming President, Javier Milei. Bloomberg sources suggest that the new regulation forces banks to liquidate their current dollar holdings, potentially offering the central bank a much-needed boost. The measure aligns with Milei's commitment to address the currency issue, signalling a departure from the current administration's policies. The Central Bank's spokespersons clarified that the objective is to prevent banks from increasing their dollar holdings on the eve of Milei's inauguration. Despite the silence from Milei's team, the move underscores the urgency felt within the government to stabilise the economy and manage the impending devaluation. Milei's team has hinted at maintaining currency controls temporarily while seemingly deferring plans to scrap the peso altogether. The incoming administration faces the challenge of sustaining the peso's value amid economic uncertainties. Market analysts suggest that the current exchange rate is unsustainable, emphasising the need for decisive measures to avert a deeper economic crisis. (With inputs from Bloomberg) WATCH WION LIVE HERE

Argentina imposes limits on banks’ dollar holdings amid concerns over devaluation 

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments.

The Petro-Dollar era unravelled

The U.S. dollar has been the undisputed currency in international oil transactions for decades. However, as Western sanctions gripped Russia in response to the Ukraine conflict, Moscow began steering away from the dollar and euro. Currently, less than 10 per cent&nbsp;of Russia's daily oil output is sold in these dominant currencies. The Russian central bank, restricted by sanctions, faces challenges in dollar operations, prompting a strategic shift in how Russia engages in global trade.

Pivot to India

Amid this shift, India emerged as a pivotal player, becoming Russia's largest buyer of seaborne oil. In a bold move, India insisted on paying for oil in rupees, disrupting established norms. However, this stance faced resistance, as the Russian central bank provided informal guidance against accepting the Indian currency. The resulting standoff almost derailed crucial trading activities, revealing the complexities that arise when traditional powers navigate new and assertive players.

Seeking alternatives amid sanctions

As Moscow faces limited access to the international banking system due to sanctions, Russian oil executives sought alternative currencies to facilitate transactions. The challenge lies in finding a viable substitute for the dollar, a quest that has implications not only for Russia and India but also for other key players such as buyers in Africa, China, and Turkey – all significant purchasers of Russian oil.

The Yuan factor and diplomatic sensitivities

Russian officials and oil executives, pressed by the limitations on the dollar, advocated for transactions in the Chinese yuan. While advantageous for Russia, this proposition faced resistance from India, given the sensitive nature of using the currency of a regional rival. The complexity deepened as Indian state refiners turned to the UAE dirham, introducing additional clearing requirements amidst Washington's tightened stance on enforcing price caps.

The story takes a dramatic turn as at least two major Russian oil companies threatened to redirect tankers carrying millions of tonnes of oil away from India. This move underscored the severity of the clash and the challenges in finding swift solutions. With Washington imposing sanctions on owners of tankers carrying Russian oil, the situation escalates, leaving a cloud of uncertainty over the future dynamics of global oil trade.

Bottomline

This exploration into the clash between Russia and India over oil payments unveils a narrative that goes beyond economic transactions. It reflects geopolitical shifts, the impact of sanctions, and the delicate dance between established and emerging players in the ever-evolving global trade landscape. As we witness the consequences of this clash reverberating across markets, one thing becomes clear – the tides of the global oil trade are shifting, and the implications are profound.

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments.

In the intricate world of global oil trade, a profound transformation is unfolding, challenging the longstanding dominance of the U.S. dollar. Recent geopolitical tensions surrounding the Ukraine conflict have intensified this shift, leading to a clash between Russia and India over oil payments. The Petro-Dollar era unravelled The U.S. dollar has been the undisputed currency in international oil transactions for decades. However, as Western sanctions gripped Russia in response to the Ukraine conflict, Moscow began steering away from the dollar and euro. Currently, less than 10 per cent of Russia's daily oil output is sold in these dominant currencies. The Russian central bank, restricted by sanctions, faces challenges in dollar operations, prompting a strategic shift in how Russia engages in global trade. Pivot to India Amid this shift, India emerged as a pivotal player, becoming Russia's largest buyer of seaborne oil. In a bold move, India insisted on paying for oil in rupees, disrupting established norms. However, this stance faced resistance, as the Russian central bank provided informal guidance against accepting the Indian currency. The resulting standoff almost derailed crucial trading activities, revealing the complexities that arise when traditional powers navigate new and assertive players. Seeking alternatives amid sanctions As Moscow faces limited access to the international banking system due to sanctions, Russian oil executives sought alternative currencies to facilitate transactions. The challenge lies in finding a viable substitute for the dollar, a quest that has implications not only for Russia and India but also for other key players such as buyers in Africa, China, and Turkey – all significant purchasers of Russian oil. The Yuan factor and diplomatic sensitivities Russian officials and oil executives, pressed by the limitations on the dollar, advocated for transactions in the Chinese yuan. While advantageous for Russia, this proposition faced resistance from India, given the sensitive nature of using the currency of a regional rival. The complexity deepened as Indian state refiners turned to the UAE dirham, introducing additional clearing requirements amidst Washington's tightened stance on enforcing price caps. The story takes a dramatic turn as at least two major Russian oil companies threatened to redirect tankers carrying millions of tonnes of oil away from India. This move underscored the severity of the clash and the challenges in finding swift solutions. With Washington imposing sanctions on owners of tankers carrying Russian oil, the situation escalates, leaving a cloud of uncertainty over the future dynamics of global oil trade. Bottomline This exploration into the clash between Russia and India over oil payments unveils a narrative that goes beyond economic transactions. It reflects geopolitical shifts, the impact of sanctions, and the delicate dance between established and emerging players in the ever-evolving global trade landscape. As we witness the consequences of this clash reverberating across markets, one thing becomes clear – the tides of the global oil trade are shifting, and the implications are profound.

Oil's new currency landscape: Russia's struggle beyond the dollar

China's major state-owned banks have actively participated in the currency market, buying the yuan and accelerating its rebound against a weakening US dollar, according to undisclosed sources cited by Reuters on Tuesday. &nbsp;

Traditionally involved in selling dollars to prevent the yuan's decline, the state banks' unexpected yuan-buying this week has contributed to a 2 per cent gain, placing the currency at approximately 7.13 to the dollar, its highest in nearly four months. Observers suggest the move aims to hasten the yuan's appreciation and encourage exporters to convert more foreign exchange receipts into yuan.&nbsp;

Market analysts speculate that the state banks employed their usual combination of swaps and spot market activity. They were observed exchanging yuan for dollars in the onshore swap market and subsequently selling those dollars in the spot currency market. &nbsp;

The action coincided with a broader weakening of the US dollar, with the dollar index falling over 3 per cent in November due to diminishing US yields amid signs of a peak in Federal Reserve monetary tightening. Despite the recent gains, the Chinese currency is still down over 3 per cent against the dollar this year.&nbsp;

State banks' dollar-selling activities momentarily pushed the onshore spot yuan to 7.1296 per dollar, surpassing its daily official guidance for the first time in four months. The People's Bank of China (PBOC) has been consistently lowering the dollar-yuan daily fixing rate this week, setting it at a three-and-a-half month low of 7.1406 per dollar on Tuesday. &nbsp;

Analysts speculate that these actions might be in preparation for a potential policy rate cut, taking advantage of a favourable external environment to strengthen the Chinese yuan (CNY).&nbsp;

Reuters quoted Kiyong Seong, the lead Asia macro strategist at Societe Generale, who expressed astonishment at the continuous lowering of the fixing rate, suggesting it could be indicative of preparations for a policy rate cut.

While recent economic data revealed&nbsp;an uneven recovery in China, with positive surprises in industrial output and retail sales, concerns persist about the potential impact of further monetary easing on the Chinese currency. &nbsp;

The People's Bank of China has been injecting cash through medium-term lending facility loans but has kept the rate unchanged, prompting analysts to anticipate more policy easing in the future.&nbsp;

Zhi Xiaojia, chief China economist at Credit Agricole, acknowledged potential volatilities unless there are significant downside moves in the dollar or positive sentiment events.

She remains relatively constructive on the yuan's outlook into the end of the year and 2024, emphasising the wide yield gap and expectations of further policy easing, including potential rate and reserve requirement ratio cuts by the People's Bank of China.&nbsp;

(With inputs from Reuters)&nbsp;

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China's major state-owned banks have actively participated in the currency market, buying the yuan and accelerating its rebound against a weakening US dollar, according to undisclosed sources cited by Reuters on Tuesday.

China's major state-owned banks have actively participated in the currency market, buying the yuan and accelerating its rebound against a weakening US dollar, according to undisclosed sources cited by Reuters on Tuesday. Traditionally involved in selling dollars to prevent the yuan's decline, the state banks' unexpected yuan-buying this week has contributed to a 2 per cent gain, placing the currency at approximately 7.13 to the dollar, its highest in nearly four months. Observers suggest the move aims to hasten the yuan's appreciation and encourage exporters to convert more foreign exchange receipts into yuan. Market analysts speculate that the state banks employed their usual combination of swaps and spot market activity. They were observed exchanging yuan for dollars in the onshore swap market and subsequently selling those dollars in the spot currency market. The action coincided with a broader weakening of the US dollar, with the dollar index falling over 3 per cent in November due to diminishing US yields amid signs of a peak in Federal Reserve monetary tightening. Despite the recent gains, the Chinese currency is still down over 3 per cent against the dollar this year. State banks' dollar-selling activities momentarily pushed the onshore spot yuan to 7.1296 per dollar, surpassing its daily official guidance for the first time in four months. The People's Bank of China (PBOC) has been consistently lowering the dollar-yuan daily fixing rate this week, setting it at a three-and-a-half month low of 7.1406 per dollar on Tuesday. Analysts speculate that these actions might be in preparation for a potential policy rate cut, taking advantage of a favourable external environment to strengthen the Chinese yuan (CNY). Reuters quoted Kiyong Seong, the lead Asia macro strategist at Societe Generale, who expressed astonishment at the continuous lowering of the fixing rate, suggesting it could be indicative of preparations for a policy rate cut. While recent economic data revealed an uneven recovery in China, with positive surprises in industrial output and retail sales, concerns persist about the potential impact of further monetary easing on the Chinese currency. The People's Bank of China has been injecting cash through medium-term lending facility loans but has kept the rate unchanged, prompting analysts to anticipate more policy easing in the future. Zhi Xiaojia, chief China economist at Credit Agricole, acknowledged potential volatilities unless there are significant downside moves in the dollar or positive sentiment events. She remains relatively constructive on the yuan's outlook into the end of the year and 2024, emphasising the wide yield gap and expectations of further policy easing, including potential rate and reserve requirement ratio cuts by the People's Bank of China. (With inputs from Reuters) WATCH WION LIVE HERE

China's state banks drive yuan rally amidst dollar weakness: Report

Oil prices experienced a substantial drop of more than 4 per cent on Tuesday, hitting their lowest point since late July. The decline in prices was attributed to a combination of factors, including mixed Chinese economic data, an increase in OPEC exports, and the strengthening of the U.S. dollar.&nbsp;

According to a Reuters report, Brent crude futures closed below the $84 per barrel mark for the first time since the October 7 attack by Hamas Islamists on Israel. The global benchmark, Brent crude, settled at $81.61 per barrel, marking a decrease of $3.57, equivalent to 4.2 per cent.&nbsp;

Simultaneously, U.S. West Texas Intermediate (WTI) crude futures ended at $77.37 per barrel, down by $3.45 or 4.3 per cent. Analysts noted that while traders remain watchful for signs of potential supply disruptions due to geopolitical conflicts, such concerns appear to be diminishing.&nbsp;

A contributing factor to the downward pressure on oil prices was a noticeable recovery in oil exports from the Organisation of Petroleum Exporting Countries (OPEC). According to UBS analyst Giovanni Staunovo, OPEC's crude exports have risen by approximately 1 million barrels per day (bpd) since their August low. This increase in supply has raised questions about whether oil-consuming nations can absorb the excess.&nbsp;

Furthermore, the premium on front-month loading Brent contracts over those loading six months later reached a two-and-a-half-month low, suggesting reduced anxiety regarding potential supply shortages.&nbsp;

On the demand side, although China's crude oil imports in October displayed robust growth, the country's overall exports of goods and services contracted more rapidly than anticipated. This has led analysts to speculate that the Chinese economic outlook is being impacted by declining demand in Western markets, which are the country's primary export destinations.&nbsp;

The U.S. also contributed to the pressure on oil prices as it reported a substantial increase in crude oil stocks, rising by nearly 12 million barrels in the last week. This data contradicted&nbsp;the earlier forecast by the U.S. Energy Information Administration, which had predicted a 100,000-bpd increase in total petroleum consumption for the year. Instead, the latest report now expects a 300,000-bpd decrease in petroleum consumption.&nbsp;

Additionally, fading hopes for a peak in global interest rates boosted the U.S. dollar from recent lows. A stronger U.S. dollar has the effect of making oil more expensive for holders of other currencies. The U.S. central bank may take further actions to reduce inflation to its 2 per cent target, according to comments by Minneapolis Federal Reserve President Neel Kashkari. &nbsp;

Investors are also awaiting remarks from Federal Reserve Chair Jerome Powell, to be delivered on Wednesday and Thursday.&nbsp;

(With inputs from Reuters)&nbsp;

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Oil prices experienced a substantial drop of more than 4 per cent on Tuesday, hitting their lowest point since late July. The decline in prices was attributed to a combination of factors, including mixed Chinese economic data, an increase in OPEC exports, and the strengthening of the U.

Oil prices experienced a substantial drop of more than 4 per cent on Tuesday, hitting their lowest point since late July. The decline in prices was attributed to a combination of factors, including mixed Chinese economic data, an increase in OPEC exports, and the strengthening of the U.S. dollar. According to a Reuters report, Brent crude futures closed below the $84 per barrel mark for the first time since the October 7 attack by Hamas Islamists on Israel. The global benchmark, Brent crude, settled at $81.61 per barrel, marking a decrease of $3.57, equivalent to 4.2 per cent. Simultaneously, U.S. West Texas Intermediate (WTI) crude futures ended at $77.37 per barrel, down by $3.45 or 4.3 per cent. Analysts noted that while traders remain watchful for signs of potential supply disruptions due to geopolitical conflicts, such concerns appear to be diminishing. A contributing factor to the downward pressure on oil prices was a noticeable recovery in oil exports from the Organisation of Petroleum Exporting Countries (OPEC). According to UBS analyst Giovanni Staunovo, OPEC's crude exports have risen by approximately 1 million barrels per day (bpd) since their August low. This increase in supply has raised questions about whether oil-consuming nations can absorb the excess. Furthermore, the premium on front-month loading Brent contracts over those loading six months later reached a two-and-a-half-month low, suggesting reduced anxiety regarding potential supply shortages. On the demand side, although China's crude oil imports in October displayed robust growth, the country's overall exports of goods and services contracted more rapidly than anticipated. This has led analysts to speculate that the Chinese economic outlook is being impacted by declining demand in Western markets, which are the country's primary export destinations. The U.S. also contributed to the pressure on oil prices as it reported a substantial increase in crude oil stocks, rising by nearly 12 million barrels in the last week. This data contradicted the earlier forecast by the U.S. Energy Information Administration, which had predicted a 100,000-bpd increase in total petroleum consumption for the year. Instead, the latest report now expects a 300,000-bpd decrease in petroleum consumption. Additionally, fading hopes for a peak in global interest rates boosted the U.S. dollar from recent lows. A stronger U.S. dollar has the effect of making oil more expensive for holders of other currencies. The U.S. central bank may take further actions to reduce inflation to its 2 per cent target, according to comments by Minneapolis Federal Reserve President Neel Kashkari. Investors are also awaiting remarks from Federal Reserve Chair Jerome Powell, to be delivered on Wednesday and Thursday. (With inputs from Reuters) WATCH WION LIVE HERE

Oil prices tumble over 4pc to its lowest level since July. Here's why

Global stock indices jumped dramatically, and the US dollar plummeted to a six-week low.

Global markets roundup | Wall Street has the best week in 2023

One euro has been worth $1 for less than a year and speculation of the single currency returning to that level is once again infiltrating market conversation. Analysts have lowered their expectations to a little under $1 in the previous two weeks. Google searches for the term parity have also increased.

Google searches spike for 'parity' as Euro-Dollar debate heats up

India's rupee has come a long way in its journey since 1947. Now, the currency aims to go global, with several countries already interested in trading in the Indian rupee. No journey of the Indian rupee can be complete without exploring its relationship with the u.S. Dollar - the world's reserve currency. Our report takes a deep dive into the rupee's fascinating roller coaster ride.

Tracking Rupee's journey since 1947

Asia's stock market fell as Treasury yields and the US dollar increased, suggesting that investors have not yet completely adjusted their expectations for interest rates. Japan, Australia, and China's equity indexes all saw declines, while the Kospi Index reached a six-month low due to a drop in South Korean stocks.

Asia stocks fall as treasury yields, dollar higher

On Thursday, the Beijing-controlled onshore yuan plunged to its lowest level against the dollar since 2007 as concerns over an impending economic slowdown were rekindled by falling Chinese exports.

After briefly reaching 7.3284 yuan, the lowest level since December 2007, the onshore yuan lost 0.13 per cent to 7.3279 yuan to the US dollar at around 09:25 GMT.

The offshore yuan, which is traded more freely than domestic currency outside of mainland China, decreased 0.19 percent to 7.3350 to the dollar.

Data released on Thursday indicated that China’s exports and imports fell once more in August, adding to the pressure on the government to adopt more stimulus measures for the world’s second-largest economy.

According to Lee Hardman, currency analyst at MUFG bank, “speculation has grown recently that domestic policymakers may eventually permit the renminbi (yuan) to devalue more significantly to help provide more support for growth from net trade.”

“However, their actions to support the renminbi suggest a gradual depreciation path is favoured as they remain wary of encouraging a sharp pick-up in capital outflows,” he continued.

In July, prices dropped for the first time in more than two years, which kept customers from making purchases, causing imports to decline by 7.3 per cent on a year-over-year basis.

Additionally, China’s exports, which have historically been a major driver of its economic growth, fell by 8.8 per cent.

(With inputs from AFP News)

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On Thursday, the Beijing-controlled onshore yuan plunged to its lowest level against the dollar since 2007 as concerns over an impending economic slowdown were rekindled by falling Chinese exports.

On Thursday, the Beijing-controlled onshore yuan plunged to its lowest level against the dollar since 2007 as concerns over an impending economic slowdown were rekindled by falling Chinese exports. After briefly reaching 7.3284 yuan, the lowest level since December 2007, the onshore yuan lost 0.13 per cent to 7.3279 yuan to the US dollar at around 09:25 GMT. The offshore yuan, which is traded more freely than domestic currency outside of mainland China, decreased 0.19 percent to 7.3350 to the dollar. Data released on Thursday indicated that China’s exports and imports fell once more in August, adding to the pressure on the government to adopt more stimulus measures for the world’s second-largest economy. According to Lee Hardman, currency analyst at MUFG bank, “speculation has grown recently that domestic policymakers may eventually permit the renminbi (yuan) to devalue more significantly to help provide more support for growth from net trade.” “However, their actions to support the renminbi suggest a gradual depreciation path is favoured as they remain wary of encouraging a sharp pick-up in capital outflows,” he continued. In July, prices dropped for the first time in more than two years, which kept customers from making purchases, causing imports to decline by 7.3 per cent on a year-over-year basis. Additionally, China’s exports, which have historically been a major driver of its economic growth, fell by 8.8 per cent. (With inputs from AFP News) WATCH WION LIVE HERE

Onshore yuan hits 2007 dollar low amid China slowdown fears: Report

Due to an increase in crude oil prices and a stronger US dollar, the rupee saw its highest monthly depreciation on Tuesday.

According to Bloomberg statistics, the rupee decreased by 29 paise to close at Rs 83.04 versus the dollar on Tuesday. On August 2, it had decreased by 33 pence.

“This depreciation can be attributed to the overall strength of the US dollar and a significant increase in crude oil prices, which surged by more than 10 per cent to reach $85 per barrel,” Financial Express quoted Jateen Trivedi, VP research analyst, LKP Securities, as saying.

As a result of Russia and Saudi Arabia extending supply curbs through the end of the year, crude oil prices have reached a 10-month high.

The purchasing power of the rupee weakens when it depreciates against other currencies, especially. This leads to customers having to pay&nbsp;more for imported goods and services.

Over 80 per cent of India’s crude oil is imported, and inflation is the main effect of a weakening rupee.

On September 5, the dollar index increased by 0.4 per cent against the Indian rupee. Analysts say that the rupee’s decline could be linked to persistent weakness seen in Asian currencies in addition to projected dollar outflows.&nbsp;

The rise in the dollar index signals the anticipation of a future increase in interest rates, which will have an effect on the rupee market.

The Financial Express quoted Nirpendra Yadav, senior commodity research analyst, Swastika Investmart, as saying that&nbsp;China’s slower economic performance has put pressure on the Asian currency markets.

Analysts also predict that the Federal Reserve meeting, which is scheduled for later this month, will have an impact on the movement of the rupee.

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Due to an increase in crude oil prices and a stronger US dollar, the rupee saw its highest monthly depreciation on Tuesday. According to Bloomberg statistics, the rupee decreased by 29 paise to close at Rs 83.

Due to an increase in crude oil prices and a stronger US dollar, the rupee saw its highest monthly depreciation on Tuesday. According to Bloomberg statistics, the rupee decreased by 29 paise to close at Rs 83.04 versus the dollar on Tuesday. On August 2, it had decreased by 33 pence. “This depreciation can be attributed to the overall strength of the US dollar and a significant increase in crude oil prices, which surged by more than 10 per cent to reach $85 per barrel,” Financial Express quoted Jateen Trivedi, VP research analyst, LKP Securities, as saying. As a result of Russia and Saudi Arabia extending supply curbs through the end of the year, crude oil prices have reached a 10-month high. The purchasing power of the rupee weakens when it depreciates against other currencies, especially. This leads to customers having to pay more for imported goods and services. Over 80 per cent of India’s crude oil is imported, and inflation is the main effect of a weakening rupee. On September 5, the dollar index increased by 0.4 per cent against the Indian rupee. Analysts say that the rupee’s decline could be linked to persistent weakness seen in Asian currencies in addition to projected dollar outflows. The rise in the dollar index signals the anticipation of a future increase in interest rates, which will have an effect on the rupee market. The Financial Express quoted Nirpendra Yadav, senior commodity research analyst, Swastika Investmart, as saying that China’s slower economic performance has put pressure on the Asian currency markets. Analysts also predict that the Federal Reserve meeting, which is scheduled for later this month, will have an impact on the movement of the rupee. WATCH WION LIVE HERE

Rupee experiences its highest monthly depreciation as US dollar strengthens, oil prices rise

The Pakistani rupee reached a record-low closing value of 300.2 against the US dollar, breaking through the psychological barrier of 300 on Thursday. Data from the central bank indicated that this unwanted milestone was reached amid less curbs on outflows.

On Wednesday, the Pakistani rupee lost more ground, closing at 299.6 to the US dollar.

The rupee has lost 2.9 per cent of its value since the caretaker government assumed power on August 15, when it hit a record low for a third straight day.

The administration is tasked with monitoring at least one review of the $3 billion standby agreement with the International Monetary Fund (IMF) and guiding the nation towards a general election, scheduled to take place by November.

In order to stop the drain on its dwindling foreign reserves, Pakistan introduced import restrictions beginning in 2022. The IMF rescue programme to support the crisis-hit economy had a clause to remove those restrictions from June this year.&nbsp;

“When you open up a restricted trade economy, it results in an initial overreaction,” Fahad Rauf, head of research at Ismail Iqbal Securities, told Reuters.

He added that increased inflation expectations have returned as a result of the government’s imposition of energy tariffs and increase in the price of petrol.

These steps are inflationary and put pressure on the rupee, he added.

(With inputs from Reuters)

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The Pakistani rupee reached a record-low closing value of 300.2 against the US dollar, breaking through the psychological barrier of 300 on Thursday. Data from the central bank indicated that this unwanted milestone was reached amid less curbs on outflows.

The Pakistani rupee reached a record-low closing value of 300.2 against the US dollar, breaking through the psychological barrier of 300 on Thursday. Data from the central bank indicated that this unwanted milestone was reached amid less curbs on outflows. On Wednesday, the Pakistani rupee lost more ground, closing at 299.6 to the US dollar. The rupee has lost 2.9 per cent of its value since the caretaker government assumed power on August 15, when it hit a record low for a third straight day. The administration is tasked with monitoring at least one review of the $3 billion standby agreement with the International Monetary Fund (IMF) and guiding the nation towards a general election, scheduled to take place by November. In order to stop the drain on its dwindling foreign reserves, Pakistan introduced import restrictions beginning in 2022. The IMF rescue programme to support the crisis-hit economy had a clause to remove those restrictions from June this year. “When you open up a restricted trade economy, it results in an initial overreaction,” Fahad Rauf, head of research at Ismail Iqbal Securities, told Reuters. He added that increased inflation expectations have returned as a result of the government’s imposition of energy tariffs and increase in the price of petrol. These steps are inflationary and put pressure on the rupee, he added. (With inputs from Reuters) WATCH WION LIVE HERE

Pakistani rupee falls to an all-time low of 300.2 against the US dollar

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