VOI - Voice of Indonesia | RRI - Radio Republik Indonesia

U.S. dollar banknote is seen in this picture illustration taken May 3, 2018. REUTERS/Dado Ruvic/Illustration/File Photo - 

LONDON/SINGAPORE :The dollar stayed near a two-week high on Wednesday after jumping the previous day, its rally underpinned by elevated U.S. Treasury yields and a cautious turn that weighed on Wall Street.

Trading was relatively subdued, with Japanese markets shut for a holiday and investors waiting for important U.S. economic releases later in the day, including minutes from the Federal Reserve's December meeting.

The euro was last up 0.12 per cent against the dollar at $1.0954. It fell 0.95 per cent on Tuesday, its biggest daily drop since July.

That helped push the dollar index, which tracks the currency against six major peers, slightly lower to 102.18, although it held on to almost all of the previous day's gains of 0.86 per cent.

A surge in risk appetite at the end of last year, sparked by a drop in inflation and a dovish tilt in the Federal Reserve's December policy meeting, fuelled bets for U.S. rate cuts in 2024, toppling the greenback and sparking a rally in Treasuries and stocks. The dollar index hit a five-month low of 100.61 last week.

That buoyant mood failed to carry over into the New Year, with the S&P 500 and Nasdaq Composite closing lower on their first trading session of 2024, dragged down by big tech names [.N]. Treasury yields jumped as prices fell, boosting the attractiveness of U.S. debt and propelling the dollar higher.

"I think that what happened in the latter half of December was just not justified," said Alvin Tan, head of Asia FX strategy at RBC Capital Markets.

"The markets got carried away with this view of imminent Fed cuts in the first quarter, that took the dollar off. So I do think that this reversal can carry on for a bit longer."

The greenback was last up 0.43 per cent against Japan's yen at 142.57 to the dollar, adding to the previous day's 0.82 per cent gain.

Investors will scrutinise the minutes from the Fed's December meeting, due at 1900 GMT (2 p.m. ET), for any hints about how many rate cuts the central bank will actually carry out this year.

Data on U.S. job openings for November and a survey-based gauge of the manufacturing sector could also move markets.

"As more people come back it will be more about the data," said RBC's Tan.

The New Zealand dollar, often used as a proxy for risk appetite, was last 0.11 per cent higher at $0.6259, having slid to a two-week low of $0.6246 earlier on Wednesday.

Sterling gained 0.21 per cent to $1.2646, having slid 0.87 per cent in the previous session, its sharpest daily fall in nearly three months.

Analysts said the risk-off mood was also in part driven by concerns over escalating geopolitical tensions, after Israel killed Hamas deputy leader Saleh al-Arouri in a drone strike in Lebanon's capital Beirut on Tuesday.

"I suspect that markets (are) starting the year with finding it hard to completely ignore geopolitics," said Ray Attrill, head of FX strategy at National Australia Bank//CNA-VOI

Pump jacks of Wintershall DEA are pictured in Emlichheim near the northern German city of Meppen, Germany, Mar 9, 2022. (Photo: Reuters/Fabian Bimmer) - 

Voinews, Jakarta - Oil prices stabilised in early Asian trade on Wednesday (Jan 3) after sharp moves earlier in the week, as markets weighed concerns about the US economy and potential supply disruptions from ongoing tensions in the Red Sea.

Brent crude slipped 1 cent, or 0.01 per cent, to US$75.88 a barrel by 0300 GMT, while US West Texas Intermediate crude futures rose 4 cents, or 0.06 per cent, to US$70.42 a barrel.

Oil prices had climbed around US$2 earlier in the week following attacks on vessels in the Red Sea by Houthi rebels over the weekend and the reported arrival of an Iranian warship on Monday. A wider conflict could close crucial waterways for oil transportation and disrupt trade flows.

However, the market fell in the previous session as market optimism about early and aggressive US interest rate cuts ebbed ahead of the release of Federal Reserve minutes and jobs data.

"Energy markets were unable to escape the broader pressure seen on risk assets with equity markets also weaker. The weakness in oil comes despite a ratcheting up in tensions in the Middle East," said ING analysts in a client note.

Expectations of ample supply in the first half of 2024 have kept a lid on prices ahead of OPEC+ plans to hold a meeting of its Joint Ministerial Monitoring Committee (JMMC) in early February. An exact date has not been decided, three sources from the alliance said.

"While the geopolitical situation is a concern for the oil market, a fairly comfortable oil balance over the first half of 2024 does help to ease some of these worries," said ING analysts.

"Given the scale of cuts we are already seeing, it will be increasingly difficult for the group to cut more if needed over the course of 2024," they said, pointing to the fact that recent cuts have been driven by voluntary reductions, rather than group-wide cuts.

Ahead of weekly US crude and product inventory reports, analysts polled by Reuters expected crude stockpiles fell last week, while distillate and gasoline stocks likely rose.

Data from the American Petroleum Institute industry group is due at 4.30pm local time (2130 GMT) on Wednesday, and data from the Energy Information Administration, the statistical arm of the US Department of Energy, is due at 11am (1600 GMT) on Thursday, delayed by a day due to the New Year's holiday on Monday//CNA-VOI

Firefighters inspect collapsed wooden houses in the city of Wajima on Japan's Noto Peninsula, the area hardest hit by the New Year's Day earthquake (Photo: AFP/Kazuhiro NOGI) - 

Voinews, Jakarta, WAJIMA: Japanese rescuers scrambled to search for survivors on Wednesday (Jan 3) as authorities warned of landslides and heavy rain after a powerful earthquake that killed at least 62 people.

The 7.5-magnitude quake on Jan 1 that rattled Ishikawa prefecture on the main island of Honshu triggered tsunami waves more than a metre high, sparked a major fire and tore apart roads.

The Noto Peninsula of the prefecture was most severely hit, with several hundred buildings ravaged by fire and houses flattened in several towns, including Wajima and Suzu, as shown by before-and-after satellite images released on Wednesday.

The regional government announced on Wednesday that 62 people had been confirmed dead and more than 300 injured, 20 of them seriously.

The toll was expected to climb as rescuers battle aftershocks and poor weather to comb through rubble.

More than 31,800 people were in shelters, the government said.

"More than 40 hours have passed since the disaster. We have received a lot of information about people in need of rescue and there are people waiting for help," Prime Minister Fumio Kishida said on Wednesday after an emergency task force meeting.

The number of military personnel sent to the area on rescue missions has been doubled, with more rescue dogs also deployed, he added.

The operation was given extra urgency as the Japan Meteorological Agency (JMA) issued a heavy rain warning in the region, advising people to be on alert for landslides until Wednesday evening.

There were "almost no houses standing" in one town in the Suzu area, said municipal mayor Masuhiro Izumiya.

"About 90 per cent of the houses (in that town) are completely or almost completely destroyed ... The situation is really catastrophic," he said, according to broadcaster TBS//CNA-VOI

Religious Affairs Minister Yaqut Cholil Qoumas. (ANTARA/Pradanna Putra Tampi) - 

Voinews, Jakarta - Religious Affairs Minister Yaqut Cholil Qoumas will depart for Saudi Arabia on January 6, 2024, to ink a memorandum of understanding (MoU) with the authority of Saudi Arabia regarding implementation of the 2024 Hajj pilgrimage.

"Inshallah (God willing), on January 6, I will depart for Saudi Arabia to sign an MoU on Hajj with the Ministry of Hajj and Umrah of the Kingdom of Saudi Arabia," Qoumas remarked here on Wednesday.

The MoU will be related to various matters on the Hajj pilgrimage, such as the Hajj quota, accommodation, transportation, consumption, and services in Arafat, Muzdalifah, and Mina.

The minister noted that with the MoU in place, all preparations for the Hajj pilgrimage could be started.

According to Qoumas, the preparation process for Hajj continues to be accelerated. The ministry is currently awaiting the issuance of a Presidential Decree regarding the Cost of Organizing Hajj (BPIH) for 2024.

The decree will regulate the Hajj Travel Cost (Bipih) that should be paid by prospective Hajj pilgrims based on the embarkation points.

Although still awaiting the Presidential Decree, the Ministry of Religious Affairs announced that Bipih payments for prospective pilgrims in the regular Hajj pilgrimage category will open, starting on January 9, 2024.

The government and the House of Representatives (DPR) earlier agreed to set the BPIH at an average of Rp93.4 million (around US$6,033). Meanwhile, the Bipih that must be paid by each pilgrim is set at Rp56.04 million (around US$3,619).

The minister explained that the payment for this year's Hajj could be done in installments. This policy was taken to reduce the burden on prospective pilgrims.

However, he said that although the payment period has not yet been opened, prospective Hajj participants can start saving their money in their respective bank accounts, so that the funds will be ready later//VOI-ANT