Latest news with #USFederalReserve
India Gazette
an hour ago
- Business
- India Gazette
Dollar weakness not driven by changing interest rates, but because capital is moving away from US assets: Report
New Delhi [India], June 28 (ANI): The recent fall in the US dollar is no longer being driven only by changing expectations around interest rates. According to a report by Union Bank of India, the dollar's decline is now being supported by a more fundamental shift as global capital is moving away from US assets. The report stated, 'The dollar's weakness is no longer being driven solely by shifting rate expectations; it is now being reinforced by a decisive reallocation of global capital'. It also suggested that unless the US Federal Reserve re-establishes a clear lead in policy or US economic growth picks up speed, the report highlighted that this preference for non-US fixed income assets could continue to weigh on the dollar index (DXY) in the near term. The report also noted that a number of Federal Reserve officials have recently made dovish comments, meaning they are leaning towards keeping interest rates steady or even lowering them. This has added to the pressure on the dollar, encouraging investors to increase short positions, bets that the dollar will continue to fall. Earlier in the year, the dollar index had started slipping in late February, mainly due to weaker US economic data and a gradual reassessment of the Fed's interest rate path. However, at that time, the dollar was still seeing strong support from global capital flows. For example, four-week average inflows into US equity funds were around USD 6-7 billion in late February and rose to a peak of USD 9 billion by mid-April. US bond funds also saw consistent inflows of USD 7-9 billion during this period. As per report, this showed that the initial weakness in the dollar was more linked to interest rate expectations rather than any major shift in investor confidence. But that is changing now. With geopolitical tensions largely priced in, the future of the dollar is expected to be shaped more by domestic US factors. The report outlined that the dollar's direction now appears to be guided less by global interest rate trends and more by shifting capital flows and local US events. (ANI)
BusinessToday
3 hours ago
- Business
- BusinessToday
KLCI May Continue To Trend Higher With Resistance Level At 1,540
Asian markets mostly closed higher, buoyed by hopes that the US-brokered Israel-Iran ceasefire would hold, which also contributed to a decline in oil prices. Sentiment across the region was further boosted by a mildly dovish tone from US Federal Reserve Chairman Jerome Powell, echoing earlier remarks from Fed officials Waller and Bowman, which kept the possibility of a July rate cut in play, contingent on inflation trends and rising labour market risks. United States Market: In the US, the Dow Jones Industrial Average slipped 107 points, experiencing profit-taking after rallying 917 points over the past three consecutive sessions. Investors weighed the progress of the Middle East ceasefire against Powell's cautious congressional remarks. Powell indicated that tariff-driven inflation is manageable but reaffirmed that the Fed is not yet ready to cut rates despite political pressure. Economic data from the US showed new home sales falling to their lowest level since October 2024, impacted by high mortgage rates. Markets are now looking ahead to the release of durable goods data on June 26 and the core Personal Consumption Expenditures (PCE) reading on June 27. After market hours, Micron Technology (MU) gained 0.9% on strong earnings and outlook. Malaysian Market Performance: mirroring positive trends in Wall Street and regional markets, Malaysia's FBM KLCI gained 5.5 points to close at 1,519.8. Market breadth remained positive, indicating more advancing stocks than declining ones. Trading volume stood at 3.15 billion shares, a 15% increase compared to the June month-to-date (MTD) average of 2.74 billion shares. The total trading value reached RM2.27 billion, up 7.6% from the June MTD average of RM2.11 billion, signaling underlying market strength. Local institutions resumed their net buying, adding RM110 million (June MTD: +RM1.78 billion; Year-to-Date (YTD): +RM10.56 billion). In contrast, foreign funds continued their net outflows, recording -RM51 million today after a brief RM5 million nibble a day ago (June MTD: -RM1.50 billion; YTD: -RM12.33 billion). Retail investors also registered net outflows of -RM59 million (June MTD: -RM279 million; YTD: +RM1.77 billion). The KLCI is trending higher, with HLIB noting that major resistance levels are identified at 1,523, 1,532, and 1,540. Related
Mint
4 hours ago
- Business
- Mint
Dollar weakness not driven by changing interest rates, but because capital is moving away from US assets: Report
New Delhi [India], : The recent fall in the US dollar is no longer being driven only by changing expectations around interest rates. According to a report by Union Bank of India, the dollar's decline is now being supported by a more fundamental shift as global capital is moving away from US assets. The report stated, "The dollar's weakness is no longer being driven solely by shifting rate expectations; it is now being reinforced by a decisive reallocation of global capital". It also suggested that unless the US Federal Reserve re-establishes a clear lead in policy or US economic growth picks up speed, the report highlighted that this preference for non-US fixed income assets could continue to weigh on the dollar index in the near term. The report also noted that a number of Federal Reserve officials have recently made dovish comments, meaning they are leaning towards keeping interest rates steady or even lowering them. This has added to the pressure on the dollar, encouraging investors to increase short positions, bets that the dollar will continue to fall. Earlier in the year, the dollar index had started slipping in late February, mainly due to weaker US economic data and a gradual reassessment of the Fed's interest rate path. However, at that time, the dollar was still seeing strong support from global capital flows. For example, four-week average inflows into US equity funds were around USD 6-7 billion in late February and rose to a peak of USD 9 billion by mid-April. US bond funds also saw consistent inflows of USD 7-9 billion during this period. As per report, this showed that the initial weakness in the dollar was more linked to interest rate expectations rather than any major shift in investor confidence. But that is changing now. With geopolitical tensions largely priced in, the future of the dollar is expected to be shaped more by domestic US factors. The report outlined that the dollar's direction now appears to be guided less by global interest rate trends and more by shifting capital flows and local US events. This article was generated from an automated news agency feed without modifications to text.
BusinessToday
5 hours ago
- Business
- BusinessToday
Hang Seng Ends Slightly Lower As Investors Lock In Gains After Recent Rally
The Hong Kong stock market edged lower on June 27, snapping a multi-day winning streak, as investors opted to take profits following a strong mid-week rally that pushed the Hang Seng Index to its highest level in over three months. The Hang Seng Index slipped 0.2% to close at 24,284, easing from June 25's peak of 24,475, its strongest finish since March. Despite the slight pullback, the index remains up for the week, buoyed by optimism surrounding regional economic resilience and continued demand in technology and financial sectors. Profit-taking emerged across several key sectors, with healthcare and biotech names such as Wuxi Biologics and Innovent Biologics among the notable laggards. Meanwhile, investor caution resurfaced amid renewed scrutiny of global interest rate trends and geopolitical developments. On the upside, Hong Kong's robust IPO pipeline continued to generate interest. According to exchange data, 31 IPOs have raised over HK$88 billion so far in 2025, already outpacing the full-year tally for 2024, underscoring renewed capital market confidence. Market sentiment remains cautiously constructive, supported by expectations that China will roll out further policy support and by speculation that the US Federal Reserve could ease rates later this year, and both factors that have helped lift investor risk appetite in Asia. Looking ahead, market participants will closely monitor upcoming economic data from China and the US, which could shape short-term direction as the Hang Seng consolidates near key resistance levels. Related
Malaysian Reserve
5 hours ago
- Business
- Malaysian Reserve
Ringgit to trade firmer against US dollar next week, ahead of US labour data
KUALA LUMPUR — The ringgit is expected to trade firmer next week following the US labour market data, an analyst said. Bank Muamalat Malaysia Bhd chief economist Dr Mohd Afzanizam Abdul Rashid said investors would pay attention on two key developments, namely the Nonfarm Payrolls (NFP) and the unemployment rate — and the expiry of the 90-day pause on US tariff implementation. 'The labour market data will be pivotal in shaping expectations for the US Federal Reserve's policy direction, with greater emphasis likely to shift towards supporting maximum employment 'With signs of a softening global and US economy emerging, investor sentiment is expected to remain cautious heading into the second half of 2025,' he told Bernama. Mohd Afzanizam said the US job market is showing moderation, with the monthly average NFP standing at 123,800 in the first five months of 2025, down from 179,600 in the same period last year. The unemployment rate had risen from 4.0 per cent in January to 4.2 per cent in March this year, he added. On the currency front, he said the ringgit has shown resilience this week, rebounding from RM4.2948 against the US dollar on June 23 to RM4.2327 on June 26, marking a 1.5 per cent appreciation. 'With the US Dollar Index (DXY) on a softer trajectory, we anticipate the ringgit could trade firmer around RM4.22 to RM4.23 in the coming week,' he said. The ringgit ended the week higher against the greenback, closing at 4.2300/2355 on Thursday from 4.2505/2565 last Friday. The local note traded lower against a basket of major currencies. The ringgit depreciated vis-à-vis the Japanese yen to 2.9359/9399 from 2.9245/9289 at last Friday's close, shed against the British pound to 5.8141/8217 from 5.7356/7437 previously, and slid versus the euro to 4.9597/9661 from 4.9000/9069 at the end of last week. The ringgit also traded lower against ASEAN currencies. The local note dropped against the Singapore dollar to 3.3192/3240 on Thursday from 3.3088/3140 last Friday, and weakened versus the Thai baht to 13.0254/0488 from 12.9727/9969 last week. It fell versus the Indonesian rupiah to 260.9/261.4 on Thursday from 259.2/259.7 last Friday and was marginally lower against the Philippine peso at 7.47/7.49 compared to 7.43/7.45 previously. The market was closed on Friday for the Maal Hijrah public holiday. — BERNAMA
