In addition to the yuan, Russia's roughly $200 billion wealth fund could add Indian rupees and Turkish lira, the central bank said.
(Bloomberg) -- Russia is considering purchases of China’s yuan, India’s rupee and Turkey’s lira for its wealth fund under a budget mechanism that uses excess income from energy sales.Most Read from BloombergAuthor Salman Rushdie Stabbed on Lecture Stage in New YorkAnshu Jain, Deutsche Bank Chief in Trading Heyday, Dies at 59Extreme Heat Uncovers Lost Villages, Ancient Ruins and ShipwrecksTrump Calls for Release of Warrant Documents Used in SearchThe Fed’s Damage to the Housing Market May Last Ye
“In addition to the Russian threat from energy prices, the European manufacturing industry now has to contend with drought conditions and low water levels on the Rhine,” added ING. “That will challenge coal shipments, amongst other cargoes, and is keeping European natural gas prices bid near the highs. This factor remains an outright euro negative.”
Sterling fell against the euro on Thursday a day ahead of gross domestic product (GDP) figures which are expected to show further signs of a weakening British economy. The pound is one of the worst performers out of the G10 currencies this year, having fallen almost 10% against the U.S. dollar in 2022. On Thursday, sterling was roughly flat against a weakening dollar on the back of softer-than-expected U.S. inflation data.
Asian shares advanced after benchmarks closed at three-month highs on Wall Street from a report showing inflation cooled more than expected in July.
By Scott Kanowsky
By Barani Krishnan
Oil prices initially tumbled as much as 2% on the day as the flow of oil reportedly resumed on the Russian-owned Druzhba pipeline, after a brief blockade. The market went deeper into the red after the U.S. Energy Information Administration reported a second straight weekly build of five million barrels in crude balances.
Sterling slid to its lowest level against the euro in two weeks on Wednesday as investors turned their focus to the energy crisis hitting economic growth prospects in Britain. According to press reports, Britain is making plans for organised blackouts for industry and households over winter when cold weather may coincide with gas shortages. "Reports that UK households face huge energy bills this winter is a reminder of the potential for a sharp drop in demand in the coming months... this is further negative news for the pound," said Jane Foley, head of FX strategy at Rabobank in London.
The euro remains weak against the dollar and there doesn’t seem to be a compelling case to buy the currency pair, with Europe more exposed to geopolitical-event risks than North America, said ING.
By Scott Kanowsky
(Bloomberg) -- Already suffering from the war in nearby Ukraine, eastern Europe’s main currencies are about to take another blow from a looming euro-area recession. Most Read from BloombergWinners and Losers in Democrats’ Signature Tax and Energy BillTech Drives Stock Losses After Rally Fizzles Out: Markets WrapCarlyle CEO Resigns in Sudden Reversal of Generational ShiftR Kelly Has $28,000 in His Prison-Inmate Account. Prosecutors Want to Seize ItTraders are more bearish on the Hungarian forint,
Investor morale in the euro zone was essentially unchanged in August from the previous month, with a slight rise too little to stave off fears of recession in the 19-country currency bloc, a survey showed on Monday. Sentix's index for the euro zone inched up to -25.2 points from -26.4 in July. "The economic situation in the euro zone remains difficult," Sentix Managing Director Manfred Huebner said in a statement, adding the slight rise did not signal the all-clear.
The launch of euro-denominated bitcoin and ether futures contracts could accelerate the ongoing institutionalization of the crypto market.
The European Union intends to put together a financing package for Ukraine worth around 8 billion euros ($8.15 billion) by September, a German government official said. In May, the European Commission proposed up to 9 billion euros in loans to Ukraine during 2022 to keep the country running and set up a reconstruction package made up of grants and loans and modelled on the EU's own recovery fund. The Group of Seven's financial leaders agreed later that month on $9.5 billion in new aid, mainly from the United States, with the European Commission contributing $1 billion in grants and Germany chipping in with a similar amount that Berlin has already paid.
Sterling edged up on Thursday and traded near its highest level against the euro since April ahead of a Bank of England policy meeting, with the central bank expected to hike interest rates by the most since 1995. The central bank is largely expected to raise rates by 50 basis points (bps) to 1.75%, the highest since late 2008, and its sixth increase since December as it attempts to cool inflation from a four-decade high. Money markets are currently pricing in a greater than 90% chance of a 50 bps hike when the Bank of England (BoE) announces its decision at 1100 GMT, according to Refinitiv data.
The U.S. dollar handed back some of its earlier gains in European trade Thursday, while the pound was flat ahead of the latest Bank of England rate decision. Helping the dollar this week has been a reassessment of the likelihood of the Federal Reserve to maintain its aggressive monetary tightening stance in the wake of reasonable economic data and hawkish comments from a number of policymakers. Additionally, a number of Fed policymakers, including San Francisco Fed President Mary Daly and Minneapolis Fed President Neel Kashkari on Wednesday, have been keen this week to emphasize that the fight to rein in soaring inflation was set to continue, even if the associated rate hikes could significantly curb economic activity.
The U.S. dollar edged higher in early European trade Wednesday, maintaining the overnight gains on raised geopolitical tensions and after Federal Reserve officials pointed to more rate hikes ahead. EUR/USD fell 0.1% to 1.0155, ahead of the release of Eurozone PPI and retail sales data, while GBP/USD fell 0.1% to 1.2167, with the Bank of England widely expected to raise its benchmark rate by 0.5% to 1.75% on Thursday.
The U.S. dollar edged higher Tuesday, helped by raised geopolitical tensions, but still dropped to a two-month low against the Japanese yen as the market continued to factor in a less aggressive Federal Reserve’s tightening path. The dollar has seen some demand from safe-haven flows ahead of U.S. House of Representatives Speaker Nancy Pelosi’s impending visit to Taiwan. The territory is claimed by China, and President Xi Jinping told his U.S. equivalent, Joe Biden, during a phone call last week that “whoever plays with fire will get burnt” in reference to U.S. interference in the dispute.
The U.S. dollar edged lower Monday, weakening especially against the Japanese yen as the market reassessed the Federal Reserve’s tightening path. At 03:15 AM ET (0715 GMT), the Dollar Index, which tracks the greenback against a basket of six other currencies, traded 0.2% lower to 105.535, after falling as low as 105.490, a level not seen since July 5. Data released Friday offered a mixed inflation picture, with the personal consumption expenditures price index showing the fastest inflation since 2005 while the final University of Michigan report showed slipping consumer inflation expectations.