Business
Gold surpasses $5,000, yen strengthens on intervention fear
Gold surged past $5,000 per ounce on Monday, buoyed by safety flows amid dollar weakness following a turbulent week where tensions over Greenland and Iran rattled investors, while markets remained on tenterhooks after violent spikes in the yen.
The yen rose over 1% to 153.99 per dollar as of 0427 GMT, after sharp spikes on Friday sparked speculation over potential intervention. The New York Federal Reserve conducted rate checks on Friday, sources told Reuters, raising the chance of joint U.S.-Japan intervention to halt the currency’s slide.
“The market’s inclination is to short the yen but the possibility of co-ordination means it no longer is a one-way bet,” said Prashant Newnaha, senior rates strategist at TD Securities in Singapore.
The prospect of joint intervention to support the yen pulled the dollar lower and broadly lifted other currencies.
Japan’s Nikkei dropped about 2% while S&P 500 futures fell 0.25% and European futures were 0.27% lower as traders awaited the Federal Reserve’s policy meeting later in the week.
U.S. President Donald Trump provided temporary relief to markets last week by reversing tariff threats and downplaying potential forceful action against Greenland. However, further sanctions targeting Iran have reinforced market anxiety.
Increased U.S. pressure against Iran is pushing oil prices higher and lifting safe-haven gold to record peaks. Precious metals, including silver , have surged in a blistering rally so far this year, also aided by a softer dollar.
INTERVENTION CHATTER KEEPS YEN ALOFT
While authorities in Tokyo declined to comment on the yen’s wild swings, sources told Reuters about the rate checks on Friday, leaving traders on edge at the prospect of an intervention that could come any time.
Japanese Prime Minister Sanae Takaichi said on Sunday her government will take necessary steps against speculative market moves.
Carlos Casanova, senior Asia economist at UBP, said the mere expectation of potential intervention could, in itself, contribute to some strengthening of the currency.
“The Japanese yen is likely to stabilise to some extent – though the catalysts for significant appreciation remain limited – while long-term yields are expected to face continued pressure at their current elevated levels.”
A steep bond market rout in Japan last week had put the spotlight on Takaichi’s expansionary fiscal policy as she called a snap election that is due for February 8. The bond market has since calmed somewhat, but investors remain jittery.
The yen was broadly firmer against other currencies too on Monday, inching away from the record low against the euro and Swiss franc and multi-decade lows against sterling.
Charu Chanana, chief investment strategist at Saxo, said the rate-check style warning could help reset positioning and remind the market there’s a line near 159–160.
“With the dollar starting to look softer, this is actually a cleaner window for Japan to lean against yen weakness. Intervention works better when it’s going with the broader USD tide, not fighting it.”
The dollar index , which measures the U.S. currency against six rivals, fell as much as 0.2% to a four-month low of 96.996 after dropping 0.8% on Friday in its biggest one-day drop since August.
Investor focus this week will also be on the Fed. The central bank is expected to hold rates steady at a meeting overshadowed by a Trump administration criminal investigation of Fed Chair Jerome Powell, whose term ends in May.
In commodities, oil prices were little changed after rising about 3% on Friday, with traders weighing the impact of Trump pressuring Iran through more sanctions on vessels that transport its oil.
Brent crude futures were flat at $65.91 a barrel, while U.S. West Texas Intermediate crude stood at $61.1 per barrel.
Business
Afghanistan’s pine nut exports increase by 69 percent
Afghanistan’s pine nut exports increased by 69 percent in the first seven months of the current solar year 1405 compared with the same period last year, reaching $72 million, the Afghanistan Chamber of Commerce and Investment (ACCI) says.
According to chamber officials, the value of pine nut exports stood at $42 million during the first seven months of last year. The product has been exported to European countries, India and, particularly, China.
Meanwhile, officials at the Ministry of Industry and Commerce say they have taken steps since the beginning of the year to expand pine nut exports and identify new markets for the product.
However, some economic experts say pine nuts are among Afghanistan’s key export products and that relevant government ministries, particularly the Ministry of Industry and Commerce, should strengthen efforts to promote the product and secure access to new markets.
Afghan pine nuts are also exported to China, India, the United Arab Emirates, Saudi Arabia, Pakistan, the United States, the United Kingdom, Italy, Germany, Australia, Turkey, Austria and Kuwait.
Experts emphasize that pine nut packaging should be improved to meet the requirements and standards of different international markets in order to further increase exports.
Business
US sanctions and blockade measures disrupt Iran’s trade with Afghanistan and regional neighbors
The effects have also extended beyond Iran’s borders, affecting regional trade routes and cross-border commerce with neighboring countries, including Afghanistan.
US naval blockade measures and economic sanctions against Iran are increasingly disrupting the country’s overland trade with Afghanistan and other regional neighbors, including Pakistan, Turkmenistan and Turkey, according to a US Treasury Department report cited by Axios.
The report said Washington aims to pressure Iranian officials into negotiations through economic restrictions and other measures targeting the country’s economy.
According to the Treasury Department, US sanctions and mounting economic pressure have significantly weakened Iran’s national currency, fueled inflation and disrupted commercial activities.
The effects have also extended beyond Iran’s borders, affecting regional trade routes and cross-border commerce with neighboring countries, including Afghanistan.
The developments have raised concerns over the potential economic impact on regional trade, particularly in countries that rely on commercial routes and trade links with Iran.
Business
Afghanistan inaugurates first phase of Kandahar cement factory
According to officials, the first phase of the factory has a daily production capacity of 1,500 metric tons of cement and is expected to generate thousands of direct and indirect jobs.
Afghanistan has inaugurated the first phase of the Shorandam Cement Factory in Kandahar province, marking a step toward expanding domestic cement production and reducing reliance on imports.
Mullah Abdul Ghani Baradar, Deputy Prime Minister for Economic Affairs, officially opened the facility on Thursday at a ceremony attended by senior officials of the Islamic Emirate.
Speaking at the ceremony, Baradar said sustainable economic development requires the effective use of domestic resources and a shift from a consumer-based economy to a production-driven one.
He stressed the need to boost local production, reduce imports, expand exports and strengthen the country’s industrial sector.
According to officials, the first phase of the factory has a daily production capacity of 1,500 metric tons of cement and is expected to generate thousands of direct and indirect jobs. Work on the second phase is also expected to begin in the future.
Hidayatullah Badri, Minister of Mines and Petroleum, said cement production had resumed in Afghanistan for the first time since the Islamic Emirate returned to power.
He added that six major cement production projects are currently underway across the country, involving a combined investment of $662 million.
According to Badri, the projects are expected to create employment opportunities for around 15,000 people and meet nearly 50 percent of Afghanistan’s domestic cement demand once completed.
Islamic Emirate spokesperson Zabihullah Mujahid also welcomed the factory’s inauguration, describing it as positive news for the country and emphasizing the importance of maintaining production quality and industrial standards.
Afghanistan currently relies heavily on imported cement to meet domestic demand. The expansion of local production is expected to reduce dependence on imports, support the construction industry and create employment opportunities.
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