Rupee weakens to record low

In May, the employee was paid Rs 1.42 crore (165,398,851 Chilean pesos) instead of his salary of Rs 43,000 (500,000 pesos). (Representative Image) The rupee touched a record low, sliding near 79 to a dollar, on June 29 as foreign investors continued selling local equities and crude oil prices rose. Experts say the sharp fall of the rupee can be attributed to the strength of the greenback and lower forward premiums, among others. Moneycontrol explains the reasons for the rupee’s depreciation. How much did the rupee depreciate? The rupee opened at 78.85 per dollar and slid to 78.95, an all-time high, during intra-day trade on Wednesday. On a weekly basis, the currency has depreciated 1.2 percent. Close Why is the rupee in a free fall? Central banks led by the US Federal Reserve tightening interest rates globally, increases in crude oil and commodity prices, lower forward premiums and weakening forex reserves are some of the reasons experts cite for … [Read more...] about MC Explains | Will RBI let the rupee adjust to new lows?

- A + A (June 30): Valuations are starting to turn attractive for South Korea bonds amid signs the market has overpriced how much the most hawkish central bank in emerging Asia may raise rates. Won forward rates are pricing in about 125 basis points of hikes over the next six months, far above economists’ forecasts for how much the Bank of Korea will move. This points to an improving environment for won bonds, the biggest loser among emerging-Asia’s sovereign debt this quarter as inflation quickened to a 14-year high and bets on rate increases jumped. Increased flows into Korean debt may help ease pressures on the won, which last week reached a 13-year low. The country is vulnerable to soaring imports exacerbated by a weak currency. It also means that Korean bonds may start to diverge from other emerging markets in Asia, where the risk of interest-rate swaps and yields moving higher is clouding the outlook. “We see value in Korean government bonds, as the market … [Read more...] about Bond traders bet market has swung too far on Korea rate hikes

In a statement, Moody's said the rupee has depreciated around 4.5 per cent since the start of the year. (Representative image) Moody's Investors Service on Thursday said global credit conditions have turned more negative amid rising borrowing costs, protracted Russia-Ukraine conflict and slower economic growth. It said the surge in energy and food costs spurred by the conflict in Ukraine is weakening the purchasing power of households, raising input costs for companies and dampening investor sentiment. Among sovereign debt issuers, debt sustainability will be especially challenging for many frontier market sovereigns as their borrowing costs climb, while their economies still have not fully recovered from the COVID-19 pandemic crisis, it said. "Global credit conditions have turned more negative and will be tighter for the rest of the year amid rising borrowing costs, the prospect of a protracted military conflict between Russia and Ukraine, materially slower growth of the … [Read more...] about Global credit conditions more negative amid rising borrowing costs, slower economic growth: Moody’s

- A + A (June 30): All emerging Asian currencies were set for half-yearly losses on Thursday, with the South Korean won set to lose the most, as policy tightening by the US central bank and concerns over global economic outlook spurred selling in Asian assets. The won dropped 8.4% so far this year, while the Philippine peso and Indian rupee were on track to post half-yearly losses of 7.3% and 5.8%, respectively. Emerging markets in the six-month period were battered by capital outflows due to the US Federal Reserve kicking off its tightening cycle, Russia's invasion of Ukraine, and inflation from higher commodity prices. Among local drivers, China's insistence on a zero-Covid policy also spurred selling as the country's repeated imposition of restrictions means a slower economic recovery for the region's largest economy. "The broader market ... they need some more convincing because I think at the back of their mind, they've still got this hesitancy due to the … [Read more...] about Asian currencies set for half-year losses on rate hikes, inflation woes

Monitors are on display at a retail shop in Seoul. [NEWS1] Samsung Electronics and LG Electronics are facing historically-high inventory levels as demand for electronic devices weakens and the world finds itself awash in everything from smartphones to appliances. The flip from dearth to glut could have a wide-ranging impact. Companies are cutting orders from parts suppliers. Workers are getting fewer hours and losing their jobs. And earnings and balances sheets could be hit. Samsung Electronics, the world's largest manufacturer of televisions and smartphones, carried 47.6 trillion won ($36.6 billion) of inventory in the first quarter, up 55.4 percent on year. The figure, which has been reported by the company since 2000, is an all-time high. LG Electronics had 10.2 trillion won of inventory in the same period, up 27.7 percent on year. The excess inventories suggest lower-than-expected sales of smartphones, televisions and other home appliances as people struggle to afford … [Read more...] about Electronics companies dealing with a ‘mountain of inventory’

Bank of Baroda reports profit of Rs 1779 crore in March quarter. Bank of Baroda has reported a standalone net profit of Rs 1,778.77 crore for the fourth quarter of 2021-22 as against a net loss of Rs 1,046.5 crore a year ago. However, on a sequential basis, the lender’s net profit fell 19 per cent from Rs 2,197.03 crore in the third quarter of last fiscal. Net interest income grew 21.2 per cent to Rs 8,612 crore from Rs 7,107 crore a year ago. Trade Watchlist Portfolio Message Set Alert live bse live nse live Volume Todays L/H More × Shares of Bank of Baroda (BoB) advanced higher in early trade on May 16, after the state-owned lender reported a nine-fold jump in its profit after tax (PAT) at Rs 7,272 crore for the financial year ended March 2022 as compared to a PAT of Rs 829 crore registered in FY21. At 11:20 am, the scrip traded at Rs 98.90 apiece on the BSE, up 4.16 … [Read more...] about Bank of Baroda shares gain after lender reports nine-fold jump in PAT for FY22

Tokyo is now battling its most severe heatwave for the month of June since records began in 1875. PHOTO: REUTERS TOKYO — A smothering heatwave now blanketing Japan is not only causing a power crunch in the country but is also raising fears of a drought. Wide areas in western Japan are now facing a crippling water shortage following the shortest rainy season on record, with water levels in dams less than half of what they would be in an average year. Municipalities like the cities of Matsuyama and Shikokuchuo in Ehime prefecture have begun to call on residents to ration water. Top government spokesman Hirokazu Matsuno told a regular news briefing on Tuesday that the government has a “strong sense of crisis” over the impact on water supply if the current heatwave were to continue. The risk of a drought, however, remains low in eastern Japan as there was heavy rainfall in the mountainous areas north of Tokyo. But eastern Japan is grappling with the spectre of a power crunch. … [Read more...] about Japan faces twin threats of power shortage, drought amid heatwave

Flying Fourth of July weekend or later this summer? Pack your patience and this game plan. Y ou know travelers are in for a bumpy Fourth of July weekend when airlines and the U.S. government begin pointing fingers at each other in the days ahead of the holiday. For months, travelers have been dealing with above-normal levels of flight delays and cancellations, with airlines chopping more than 15% of scheduled summer flights due to staffing shortages and other operational issues. Unfortunately, experts see more of the same on the horizon. “Looking at the past few weeks, I don't think there's any reason to think that things are going to go especially smoothly this weekend,” says Scott Keyes, co-founder of Scott’s Cheap Flights , an airfare deals newsletter with more than two million subscribers. “With 11 million travelers expected to fly over July Fourth, we are expecting a busy holiday weekend and travelers should be prepared for potential disruptions,” says Hayley … [Read more...] about The Smart Traveler’s Survival Playbook For Summer Flight Cancellations

The “Phuket Sandbox” and “Samui Plus” travel schemes were approved by the Thai Cabinet yesterday, allowing the islands to reopen to travellers who are vaccinated against Covid-19. Phuket is set to reopen on July 1 while the trio of islands in the Gulf of Thailand, Koh Samui, Koh Pha Ngan and Koh Tao, is set to reopen on July 15. The details still need to be published in the Royal Gazette to make the travel schemes official. Only tourists travelling from countries classified as a low-risk for spreading Covid-19 can enter Thailand under the Sandbox and Samui Plus schemes without going through a 14-day quarantine, according to Ministry of Foreign Affairs spokesperson, Nopakun Natapanu, who gave details on the travel schemes during today’s Centre for Covid-19 Situation Administration daily briefing. “It will allow fully vaccinated tourists from low-risk countries, as announced by the Ministry of Public Health, to travel to Phuket and these 3 other destinations without state … [Read more...] about CCSA gives details on “Phuket Sandbox” and “Samui Plus” travel schemes

This article first appeared in City & Country, The Edge Malaysia Weekly, on June 20, 2022 - June 26, 2022. - A + A The rental and occupancy levels of office space in KL city are anticipated to see downward pressure, as a result of substantial incoming supply and low occupancy in office buildings this year. The occupancy level in KL fringe, however, is expected to remain relatively stable, driven by a wider pool of tenants/occupiers and high-quality decentralised offices, particularly in areas with ease of accessibility and adequate transport links. Meanwhile, the Selangor office market will remain resilient with more leasing activities expected, especially for buildings with Multimedia Super Corridor (MSC) status and Grade A buildings, says Knight Frank Malaysia executive director of corporate services Teh Young Khean in presenting The Edge /Knight Frank Kuala Lumpur and Selangor Office Monitor 1Q2022. Malaysia reopened its borders in early April to … [Read more...] about The Edge | Knight Frank Kuala lumpur and selangor office Monitor (1Q2022): Downward pressure on rental, occupancy rates to continue