Page 21 - Frx News Today

Egypt has deferred payments for its large wheat purchases, in some cases by months, according to a government official and traders, as the country grapples with a shortage of hard currency.

The U.S. Treasury Department is at risk of defaulting on its debt if Congress doesn't act to lift the debt ceiling before it is reached, which could happen as soon as June 1. For holders of Treasury bills, notes and bonds, that raises uncertainty over whether the issues they hold will be affected, and what happens if the debt is not repaid or an interest payment is skipped.

Turkish President Tayyip Erdogan said on Thursday that Gulf states recently sent funding to Turkey, briefly helping relieve the central bank and markets, and he intends to meet and thank their leaders after Sunday's runoff presidential election.

The U.S. dollar held near a two-month high on Wednesday on safe-haven demand as negotiations over raising the U.S. debt ceiling dragged on, while the kiwi dived 1% after New Zealand's central bank surprised markets by flagging an end to rate hikes.

Asian stocks on Wednesday extended a global sell-off as U.S. debt ceiling negotiations dragged on without resolution, while the New Zealand dollar tumbled after the central bank caught markets off-guard by flagging that its tightening cycle is over.

New Zealand's central bank on Wednesday raised interest rates by 25 basis points to the highest in more than 14 years to 5.5% and reiterated inflation remains too high even as it still forecast a recession this year.

The Indian rupee, having opened slightly weaker, crawled up on Wednesday, supported by dollar inflows and recovery on the Chinese yuan, traders said.

Zimbabwe’s dollar slumped 26% at an auction on Tuesday, after a report by two separate commissions said it was “overvalued” and urged the government to loosen foreign currency controls.

India's inflation has moderated, but lingering weather-related uncertainties still pose headwinds, the governor of the Reserve Bank of India said on Wednesday.

A look at the day ahead in European and global markets from Tom Westbrook