Dollar posts its biggest quarterly drop in nearly seven years
- Indian firms should focus on domestic market for long-term growth, say top executives
- IT firms carve out separate units to tap into AI, automation
- Trai suggests easing caps on spectrum holding
- Kishore Biyani unveils plan to make Future Group a trillion-dollar-revenue group by 2047
- Axis Asset Management looks to raise pre-IPO fund of Rs750-1,000 crore
The US dollar recovered slightly on Friday, but posted its biggest quarterly decline against a basket of rival currencies in nearly seven years after hawkish signals from foreign central banks this week pressured the greenback further.
Investors have ramped up expectations for tighter monetary policy from the European Central Bank, Bank of England and Bank of Canada after hints from officials this week.
This has made the greenback less attractive, in addition to skepticism that the Federal Reserve would be able to raise interest rates again this year given a recent batch of weak US economic data and doubts that US President Donald Trump could enact his pro-growth agenda.
The US dollar index, which measures the greenback against a basket of six major currencies, declined 4.6% for the second quarter to mark its steepest quarterly percentage drop since the third quarter of 2010.Reuters
Is the best Nasdaq run since 2009 ending?
All good things must come to an end. Or is it a pause? Either way, recent convulsions in tech shares are virtually certain to saddle the Nasdaq 100 Stock Index with a loss in June, snapping the longest streak of monthly gains since 2009.
The gauge is down 2.2% since 31 May, poised for the biggest retreat in a year. Now the question to investors is whether the weakness is a natural reversion from higher prices or a sign of broader drawdowns to come.
Julian Emanuel, executive director of equity and derivatives strategy at UBS, said: “The difference now is central banks have become far more aggressive in their hawkishness. Tech can’t rebound at this moment if yields are going higher in the near term. You have an informational vacuum the next few weeks and there is still a residual tendency by our clients to be defensive about tech. We think the group will stay under pressure until yields go back up.”Bloomberg
REITs opportunity in Indian office space
The office space market offers a larger opportunity for real estate investment trusts (REITs), when compared to residential property.
Consultant JLL India estimates there are about 901 properties that are “REIT-worthy” totaling about 283 million sq. ft. The optimism is on account of falling vacancy in the past two-to-three years, especially in cities such as Bengaluru.
Besides, the superior quality and large size of the assets should lure funds through REITs, says JLL. In the US, which ventured into these instruments in the 1960s, there has been a huge jump in market capitalization of REITs. The same is true of Singapore, where these trusts were launched in 2002.