Markets & Finance News

Lebanon's cabinet on Thursday approved a policy programme that aims to tackle one of the worst financial meltdowns in history.

Pakistan's foreign exchange reserves remain unchanged at $20,022.7 million in the week ending September 10, compared to previous week, the central bank said on Thursday. RESERVES Week ending Previous Week Change/pct ($ billions) Sept 10 Held by the State $20,022.7 mln $20,022.7 mln 0.0 Bank of Pakistan Held by $7,042.2 mln $7,080.0 mln -0.5 commercial banks Total $27,064.9 mln $27,102.6 mln -0.1 During the week ending September 10, Pakistan's central bank reserves remain unchanged at $20,022.7 million, State Bank said on Thursday. (Reporting by Syed Raza Hassan)

The dollar hit a near 3-week high against a basket of currencies on Thursday after data showed U.S. retail sales unexpectedly increased in August, easing some concerns about a sharp slowdown in economic growth. The dollar index, which measures the U.S. currency against six others, added to gains following the report and was last up 0.5% at 92.923. It hit its highest level since Aug. 27. Retail sales rose 0.7% last month, boosted in part by back-to-school shopping and child tax credit payments, while data for July was revised down. A separate report showed U.S. initial claims for state unemployment benefits increased 20,000 to a seasonally adjusted 332,000 for the week ended Sept. 11. Economists had forecast 330,000 applications for the latest week. "If you look at the retail sales number, it's quite constructive even with the revisions, so we are seeing the dollar benefit from that, particularly against the funding currencies like the euro, Swiss and the yen," said Bipan Rai, North American head of FX strategy for CIBC Capital Markets in Toronto. The news could bolster investor expectations for next week's Federal Reserve policy meeting and how soon the U.S central bank will start to taper stimulus. "It feels like whatever lingering concerns there were with the underlying economy ... that was kind of washed away a little bit. So as we move towards the Fed next week, the evidence backs up the idea that we're going to get a taper signal from the Fed at the meeting," he said. On Tuesday, the dollar index fell to a one-week low of 92.321 after a softer-than-expected inflation report. Its low for the month was 91.941, on Sept. 3, when payrolls data disappointed. Investors are looking for clarity on the outlook for both tapering and interest rates at the Fed's two-day policy meeting that ends next Wednesday. Tapering typically lifts the dollar as it suggests the Fed is one step closer to tighter monetary policy. It also means the central bank will be buying fewer debt assets, in effect reducing the amount of dollars in circulation, which in turn lifts the currency's value. The dollar also gained 0.3% to 109.68 yen, after sliding to a six-week low of 109.110 in the previous session. The euro was 0.5% lower at $1.1758. The Swiss franc also fell against the dollar and was last at 0.9260 francs. Elsewhere, the Australian dollar was down 0.7% at $0.7285. Earlier, data showed the country's jobless rate unexpectedly fell to 4.5%, but the statistics bureau said the change reflected a drop in the participation rate rather than a strengthening of the labor market. ======================================================== Currency bid prices at 10:35AM (1435 GMT) Description RIC Last U.S. Close Pct Change YTD Pct High Bid Low Bid Previous Change Session Dollar index 92.9230 92.4620 +0.51% 3.270% +92.9650 +92.4570 Euro/Dollar $1.1758 $1.1816 -0.49% -3.76% +$1.1820 +$1.1751 Dollar/Yen 109.6800 109.3800 +0.28% +6.16% +109.8250 +109.2100 Euro/Yen 128.95 129.20 -0.19% +1.60% +129.3400 +128.6100 Dollar/Swiss 0.9260 0.9197 +0.69% +4.67% +0.9271 +0.9195 Sterling/Dollar $1.3768 $1.3843 -0.54% +0.78% +$1.3852 +$1.3765 Dollar/Canadian 1.2687 1.2624 +0.52% -0.35% +1.2699 +1.2618 Aussie/Dollar $0.7285 $0.7334 -0.67% -5.30% +$0.7345 +$0.7279 Euro/Swiss 1.0888 1.0865 +0.21% +0.75% +1.0895 +1.0858 Euro/Sterling 0.8537 0.8537 +0.00% -4.48% +0.8543 +0.8501 NZ $0.7067 $0.7110 -0.63% -1.62% +$0.7140 +$0.7063 Dollar/Dollar Dollar/Norway 8.6360 8.5755 +0.78% +0.65% +8.6470 +8.5725 Euro/Norway 10.1562 10.1265 +0.29% -2.97% +10.1679 +10.1130 Dollar/Sweden 8.6424 8.5694 +0.24% +5.44% +8.6512 +8.5700 Euro/Sweden 10.1622 10.1380 +0.24% +0.86% +10.1710 +10.1360 (Reporting by Caroline Valetkevitch Additional reporting by Ritvik Carvalho in London and Kevin Buckland in Tokyo Editing by Alexander Smith and Mark Potter)

Sri Lankan shares ended lower on Thursday, dragged down by heavy losses in industrial and consumer discretionary sectors, while data showed that the country's economy grew 12.3% in the second quarter of 2021.

Tether, the world's largest 'stablecoin', said in a statement it does not hold any commercial paper or securities issued by embattled developer China Evergrande Group, as regulatory scrutiny into risks from this type of token grow.

The dollar climbed to the higher end of recent ranges against other major currencies on Thursday, as traders looked to next week's Federal Reserve policy meeting for indications on how soon the U.S central bank will start to taper stimulus.

* Volatility to last until central bank path clearer- investors

If China becomes too difficult to price in wider investment indices due to Beijing's unfolding regulatory crackdown on some of the country's leading companies, the emerging markets universe may see some seismic shifts.

* Average yield for EM local currency bonds at April 2020 high

European shares opened higher on Thursday, though market participants were still cautious after Asian equities fell for a fourth consecutive day, and as focus turns to key U.S. data due later in the session.