Tag: Pakistan currency devaluation news
June 27, 2022: Malaysian palm oil futures jumped more than 2% on Monday, recouping some losses from a plunge last week, but gains were capped by weak exports so far in June.
The benchmark palm oil contract FCPOc3 for September delivery on the Bursa Malaysia Derivatives Exchange gained 111 ringgit, or 2.38%, to 4,775 ringgit ($1,084.73) a tonne during early trade.
Palm declined 14.5% last week, effectively giving up most of the gains for this year so far. The contract had rallied earlier this year due to a global edible oil shortage after Russia's invasion of Ukraine disrupted supplies of sunflower oil.
Exports of Malaysian palm oil products for June 1-25 fell between 13% and 19.6% from the same period in May, cargo surveyors said on Saturday.
Germany does not expect its proposal for a temporary waiver on biofuel mandates to get agreement from the Group of Seven leading industrialized democracies due to resistance from the United States and Canada, a German government source said.
Dalian's most-active soyoil contract DBYcv1 rose 1.4%, while its palm oil contract DCPcv1 gained 0.04%. Soyoil prices on the Chicago Board of Trade BOcv1 were down 0.14%.
Palm oil is affected by price movements in related oils, as they compete for a share in the global vegetable oils market.
Stocks gained in Asia, amid improved risk sentiment after Wall Street rebounded strongly at the end of last week as oil prices eased, tempering fears of prolonged inflation and the accompanying aggressive Federal Reserve tightening.
June 27, 2022: Sri Lanka is struggling to secure fresh fuel supplies, a top government minister said on Sunday, as the crisis-hit country of 22 million people is down to just 15,000 tons of petrol and diesel to keep essential services running in the coming days.
The island is wilting under its worst financial crisis in seven decades with foreign exchange reserves at record lows leaving it scrambling to pay for essential imports including fuel, food, and medicine.
"We are struggling to find suppliers. They are reluctant to accept letters of credit from our banks. There are over $700 million in overdue payments so now suppliers want advance payments," Power and Energy Minister Kanchana Wijesekera told reporters.
In the past two months, Sri Lanka largely received fuel via a $500 million Indian credit line, which ran out in mid-June. A petrol shipment due last Thursday failed to arrive and no fresh shipments are yet scheduled, Wijesekera said.
"We have about 9,000 metric tons of diesel and 6,000 metric tons of petrol left. We are doing everything we can to get new stocks but we don't know when that will be."
However, Sri Lanka also implemented a 12%-22% fuel price increase in the early hours of Sunday. A price hike in May pushed inflation to 45.3%, the highest since 2015.
People, already waiting in kilometers long, snaking queues outside pumps, are unlikely to get fuel as the government will focus on issuing the remaining stocks for public transport, power generation, and medical services, Wijesekera said.
The military, which has already been deployed at fuel stations to quell unrest, will now issue tokens to those waiting, sometimes for days, he said, adding that ports and airports will be given fuel rations.
Separately, the government on Sunday asked about one million public employees to work from home until further notice.
A top delegation from the U.S. Treasury and State Departments arrived in Colombo for a three-day visit on Sunday to assess the situation. A team from the International Monetary Fund is already in Sri Lanka for talks on a possible $3 billion bailout package.
June 27, 2022: Gold prices gained on Monday, as news of some Western nations planning to officially ban imports of the metal from Russia for its invasion of Ukraine sparked some interest in bullion.
Spot gold rose 0.5% to $1,835.58 per ounce by 0231 GMT. U.S. gold futures were up 0.3% at $1,836.30.
"The G7 import ban on Russian gold seems to be providing some short-term support in early Asia (trading)," OANDA senior analyst Jeffrey Halley said.
"However, it is mostly a rubber stamp exercise in reality for the grouping, and I do not expect this to mark a structural change in the supply/demand outlook that will underpin prices."
Four of the Group of Seven (G7) rich nations moved to ban imports of Russian gold on Sunday to tighten the sanction squeeze on Moscow and cut off its means of financing the invasion of Ukraine.
"The headline will be quickly digested, and the market should go back to its tug of war between higher front-end rates, negative for gold and recession odds meaning sooner rate cuts, positive for gold," said Stephen Innes, managing partner at SPI Asset Management.
A pair of U.S. central bankers said on Friday they supported further sharp rate hikes to stem rapid price rises, even as investors cheered economic data showing inflation expectations to be less worrisome than initially feared.
Gold is seen as a hedge against inflation, but higher interest rates raise the opportunity cost of holding bullion, which yields no interest.
"Overall, gold remains mired in the middle of the $1,780-$1,880 range that's been in place since early May, and we will need a large directional move by the U.S. dollar to change that dynamic," Halley said.
Spot silver rose 1.2% to $21.36 per ounce, platinum gained 0.5% to $912.00 and palladium climbed 0.6% to $1,886.65.
June 27, 2022: Oil prices slipped more than $1 a barrel on Monday as global economic concerns depressed the oil demand outlook while investors eyed the G7 meeting this week for possible moves on Russian oil exports and a revival of Iran nuclear deal.
Brent crude futures slipped $1.42, or 1.3%, to $111.70 a barrel by 0010 GMT after rebounding 2.8% on Friday. U.S. West Texas Intermediate crude was at $106.08 a barrel, down $1.54, or 1.4%, following a 3.2% gain in the previous session.
Both contracts posted their second weekly decline last week as interest rate hikes in key economies strengthened the dollar and fanned recession fear. However, oil prices remained well supported above $100 a barrel as crude and oil product supplies remained tight after Western sanctions kept Russian oil out of reach for some buyers.
Leaders of the Group of Seven (G7) rich nations are expected to discuss this week's options for tackling rising energy prices and replacing Russian oil and gas imports, as well as further sanctions that do not exacerbate inflation.
These measures include a possible price cap on Russian crude and oil product exports aimed at curbing Russia's revenue while reducing the damage to other economies.
"It's unclear whether a price cap will achieve this outcome," Commonwealth Bank of Australia analyst Vivek Dhar said in a note.
"There's still nothing stopping Russia from banning oil and refined product exports to G7 economies in response to a price cap, exacerbating shortage conditions in global oil and refined product markets."
G7 will also discuss the prospect of reviving the Iran nuclear talks after the European Union's foreign policy chief met senior officials in Tehran to try to unblock the stalled negotiations, a French presidency official said on Sunday.
"This week, traders' focus might be on a potential resumed Iran nuclear talks, which could lead to a revival of Iran's oil exports," CMC Markets analyst Tina Teng said.
In addition, some of the G7 leaders are pushing for an acknowledgment of the need for new financing for fossil energies investment, two sources told Reuters on Sunday, as European states scramble to diversify supplies.