ET NEWS

The dollar fell across the board on Tuesday, sinking to four-year low against the euro, as investors firmed bets for a Federal Reserve interest rate cut this week. The euro was 0.5% higher at $1.827, its highest since September 2021. The U.S. dollar index, which tracks the U.S. currency against a basket of six major rivals, was 0.6% lower at 96.787, its lowest since July 3. The buck, which had steadied in recent months following a significant drop earlier in the year, has come under renewed selling pressure as expectations have risen for the Fed to resume cutting interest rates and as U.S. President Donald Trump renewed calls for aggressive monetary easing. Markets expect a 25-basis-point rate cut on Wednesday, with rapidly softening labor market data being the key driver of the ramp-up in easing bets in recent weeks. "The dollar is trading with a heavy tone across the board as investors brace for a dovish message in Wednesday's voting record, 'dot plot' summary of economic projections, and press conference," said Karl Schamotta, chief market strategist at Corpay. "Jerome Powell & Co are seen downplaying inflation risks and expressing a clear bias toward supporting labor markets -something that could help set the stage for a sequential set of cuts in the months ahead - and traders are positioning for asymmetric moves across most major currency pairs," Schamotta said. The dollar got little relief from data on Monday that showed U.S. retail sales increased more than expected in August. Investors remain concerned about U.S. economic growth amid labor market weakness and rising goods prices because of tariffs on imports. "There was a bounce-back in spending at food services and drinking places as well as a big jump in online spending. The consumer is down, but not out," Brian Jacobsen, chief economist at Annex Wealth Management, said in a note. Sterling was 0.4% higher at $1.36530, a more than two-month high, after data showed on Tuesday that Britain's jobs market has lost a little more steam, potentially easing worries at the Bank of England about persistent inflation pressures. The Office for National Statistics figures showed the number of workers on companies' payrolls falling for a seventh month in a row, while basic wage growth in the private sector - watched closely by the BoE - slowed to 4.7% between May and July from 4.8% in the three months to June. The BoE is expected to keep interest rates on hold this week, having cut in August. The euro found support Tuesday from data that showed that euro zone industrial production inched higher in July, confirming views that the sector is holding up despite trade tensions, even if its rate of expansion is anemic. German investor morale unexpectedly rose in September, the ZEW research institute said on Tuesday, in a sign of cautious optimism. Against the yen, the dollar slipped 0.5% to 146.76, ahead of the Bank of Japan policy meeting on Friday, with money markets expecting the central bank to keep rates at 0.5%. Japan's farm minister and the chief government spokesperson joined the race on Tuesday to lead the ruling party and replace outgoing Prime Minister Shigeru Ishiba, who announced his resignation last month. Cryptocurrency bitcoin < BTC=> was down 0.2% at $115,145, slipping for a fourth straight session. (Reporting by Saqib Iqbal Ahmed; Additional reporting by Joice Alves and Kevin Buckland; Editing by Ros Russell, Emelia Sithole-Matarise and Nick Zieminski)

Procter & Gamble Health on Tuesday announced that Shashank Srowthy has been appointed as the Chief Financial Officer, effective October 1, 2025. The move comes after Lokesh Chandak resigned as the Director & Chief Financial Officer as he will be moving onto his new assignment in P&G as Senior Director – Finance & Accounting, Feminine Care- Asia Pacific Enterprise Markets, Middle East and Africa. Srowthy is a Bachelor of Electronics & Telecommunication Engineering from Pune University and a Master of Management Studies from Jamnalal Bajaj Institute of Management Studies. He joined P&G in 2011 in the India and has since worked across various roles and geographies delivering outstanding results for several P&G businesses across India, Dubai and Singapore. "Srowthy will hold office as Additional Director up to the ensuing Annual General Meeting. Appointment of Shashank Srowthy as Executive Director is subject to approval of Central Government, in accordance with Section 196 of the Companies Act, 2013 read with Schedule V to the Act and approval of the Shareholders of the Company," informed the company through stock exchange filing.

Gold price surged Rs 1,800 to touch a fresh peak of Rs 1,15,100 per 10 grams in the national capital on Tuesday amid a weak US dollar and growing expectations of rate cut by the Federal Reserve. According to the All India Sarafa Association, the precious metal of 99.5 per cent purity appreciated Rs 1,800 to hit a record high of Rs 1,14,600 per 10 grams (inclusive of all taxes). In the local bullion market, gold of 99.9 per cent and 99.5 per cent purity dipped Rs 500 each to close at Rs 1,13,300 and Rs 1,12,800 per 10 grams in the previous market session. "Gold reached another record high on Tuesday with a weak US dollar and growing expectations for multiple rate cuts by the Federal Reserve fuel this rally. The dollar index has dropped to its lowest level in ten weeks, which continues to support the rally in precious metal prices," said Saumil Gandhi, Senior Analyst - Commodities at HDFC Securities. In addition, silver climbed Rs 570 to hit an all-time high of Rs 1,32,870 per kilogram (inclusive of all taxes) on Tuesday. The white metal had ended at Rs 1,32,300 per kg on Monday. "The rally has been further fuelled by US President Donald Trump's increasing pressure on the Federal Reserve to implement a larger interest rate cut at the FOMC policy meeting. "The recent weak employment data and President Trump's influence, traders have intensified their bets on more aggressive rate cuts by the Federal Reserve," Gandhi added. Meanwhile, the dollar index, which tracks the greenback against a basket of six currencies, slipped 0.28 per cent to 97.03, further aiding the bullion prices. Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities said, "Traders continue to hold long positions with the key drivers being the anticipated dovish Fed stance and ongoing trade deal developments between the US, India, and China." In the overseas markets, spot gold rose to scale a fresh peak of USD 3,698.94 per ounce. "Gold is trading high ahead of the US Fed's two-day policy meeting that begins later in the day. The Fed is expected to cut interest rates by 25 basis points on Wednesday, the first since December, and markets are almost certain that the easing cycle will continue into the following year," said Renisha Chainani, Head - Research at Augmont. Spot silver was quoting 0.10 per cent higher to trade at USD 42.72 per ounce. "For clues about the direction of future policy, traders will closely watch the Fed's projections this week, and Fed Chair Jerome Powell's press conference. "US macroeconomic data including industrial production and retail sales that are anticipated later later in the day will also be closely by the investors examined to gain more understanding of how strong the economy is," she added. Chintan Mehta, Chief Executive Officer at Abans Financial Services said, "Geopolitical risks and ongoing tariff disputes are adding to safe-haven demand. These cross currents are keeping investors anchored to gold as a hedge."

The Indian rupee inched up higher for the third consecutive day, closing Tuesday 16 paise because of broader dollar weakening ahead of the start of US Federal Reserve’s two-day policy meet, dealers said.The local currency closed at 88.0525 per dollar against Monday’s close of 88.21/1$, tracking gains in Asian currencies. Positive local equity market, which ended higher, also buoyed sentiment for the rupee.Meanwhile, the dollar fell to multi-month lows against currencies like the euro and Australian dollar with the dollar index falling below 97-mark during Asian trade. This is on the back of firmer expectation of a 25-basis point rate cut by the Federal Open Market Committee, post conclusion of its two-day meet on Wednesday. The decision will be detailed post India market hours. Optimism also stemmed from a US trade delegation currently in India, with hopes mounting for progress on resolving lingering tariff disputes. The rupee, which last week hit a record low of 88.4425 per dollar, continues to underperform relative to its regional peers because of ongoing trade tensions with the US.Currency dealers are also tracking movement in offshore Chinese yuan, which has been gaining ground as Beijing adopts a more flexible approach, allowing market forces to influence its value. Emerging market currencies stand to gain from stronger yuan. A Bloomberg analysis shows that over the past year, for every 1% yuan move, the Thai baht, Malaysian ringgit, Chilean peso, Mexican peso and Brazilian real have moved closely in tandem.“Improved risk sentiment (on hopes of U.S. rate cuts) supports “riskier” Asian currencies. But there’s caution — sticky inflation in many places, geopolitical tensions, and Chinese growth worries limit how far gains go,” said Finrex Treasury Advisors.

Russia's oil pipeline monopoly Transneft has warned producers they may have to cut output following Ukraine's drone attacks on critical export ports and refineries, three industry sources said on Tuesday. Kyiv has stepped up attacks on Russian energy assets since August in a bid to impede Moscow's war effort in Ukraine and reduce the Kremlin's revenues as attempts to secure an end to the conflict through peace talks have stalled. Oil and gas revenues have accounted for between a third and half of Russia's total federal budget proceeds over the past decade, making the sector the single most important source of financing for the government. Ukrainian drones have hit at least 10 refineries - cutting Russia's refining capacity by almost a fifth at one point - and damaged its leading Baltic Sea ports of Ust-Luga and Primorsk, Ukrainian military officials and Russian industry sources said. Russian authorities have not publicly commented on the extent of the damage or its impact on production and exports. However, Transneft, which handles more than 80% of all the oil extracted in Russia, has in recent days restricted oil firms' ability to store oil in its pipeline system, two industry sources close to Russian oil firms told Reuters. Transneft has also warned producers it may have to accept less oil if its infrastructure sustains further damage, the two sources said. The attacks could force Russia, which accounts for 9% of global oil production, to ultimately cut output, said the two sources and a third source familiar with oil pumping operations. The three sources asked not to be named due to sensitivity of the issue. Transneft did not answer requests for comment. DRONE STRIKES: 'THE FASTEST WORKING SANCTIONS'?The West has imposed successive waves of sanctions on Russia over its invasion of Ukraine, focusing heavily on its oil and gas sector. But Moscow has managed to re-route most oil exports to Asia, where India and China are its primary buyers. Last week, Ukrainian drones hit Russia's biggest oil port of Primorsk for the first time since the war began in 2022, temporarily forcing operations there to shut down. Primorsk has capacity to export more than 1 million barrels of oil per day, or more than 10% of Russia's total oil production. Ukrainian President Volodymyr Zelenskiy said the strikes had inflicted significant damage and called attacks on Russian oil infrastructure "the sanctions that work the fastest". Reuters could not verify the extent of the damage from the strikes. Russia, unlike leading OPEC producer Saudi Arabia, does not have significant capacity to stockpile oil. Primorsk partially resumed operations on Saturday, though it remained unclear how long it may take to complete full repairs, the two sources said. Russian had already lost some oil exporting capacity following another drone attack targeting the Ust-Luga oil terminal on the Baltic Sea in August, according to industry sources. The Organization of the Petroleum Exporting Countries and its allies including Russia - a group known as OPEC+ - have been increasing production since April after years of cuts aimed at supporting the oil market. Under the latest OPEC+ agreement, Russia's oil production quota is due to rise to 9.449 million barrels per day this month from 9.344 million bpd in August. "Russia's ability to ramp up oil production is now under threat due to limited storage capacity," U.S. bank J.P. Morgan said in a note. Refinery outages, meanwhile, will also weigh on production due to crude storage congestion from lower refinery runs, Goldman Sachs wrote. Both banks said production will decline only modestly as Asian buyers still had appetite for Russian crude.