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Dollar holds gains as uncertainty weighs on market sentiment

Dollar holds gains as uncertainty weighs on market sentiment

TOKYO (Reuters) – The U.S. dollar held on to gains against most currencies on Wednesday as renewed questions about a coronavirus vaccine and lack of an agreement on additional U.S. fiscal stimulus prompted a shift to safer assets.

FILE PHOTO: U.S. dollar notes are seen in this picture illustration taken at the Bank of Taiwan in Taipei November 11, 2010. REUTERS/Nicky Loh

The yuan was little changed versus the dollar after the central bank’s daily fixing of the yuan’s mid-point was largely in line with estimates, suggesting authorities have paused their attempts to rein in the currency.

The euro and British pound are likely to extend declines, analysts said, as a return of restrictions on economic activity in Europe and Britain to battle a second wave of coronavirus infections unnerves investors.

Currency moves, however, are likely to be subdued as the U.S. presidential election looms on Nov. 3, but analysts said sentiment is leaning against riskier bets, which should support the dollar in the coming days.

“Many factors are pointing to more upside for the dollar,” said Masafumi Yamamoto, chief currency strategist at Mizuho Securities.

“U.S. stimulus may not come until after the election. The People’s Bank of China is halting the yuan’s rise. There’s no reason to buy the euro, and there are a lot of euro longs that need to be unwound.”

The dollar last stood at $1.1744 per euro EUR=D3, holding on to a 0.6% gain from the previous session.

The pound GBP=D3 traded at $1.2932, nursing a 1% loss from Tuesday.

Sterling also took a hit due to worries about little progress in trade talks between Britain and the European Union and the chance the Bank of England will adopt negative interest rates.

Risk appetite has weakened after Johnson & Johnson JNJ.N said on Tuesday

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India weighs plan to keep ‘inimical’ nations out of core industries

India weighs plan to keep ‘inimical’ nations out of core industries

© Provided by Hindustan Times

Indian national security planners are considering a security architecture that weeds out inimical countries from participating in core economic sectors such as power, telecommunications and roads by verifying the origin and testing the reliability of imported equipment related to such sectors, officials aware of the development said.

India will also forge collaborations in the development of critical technologies such as 5G and 5G-plus telecommunication standards through government-to-government or industry-to-industry partnerships rather than opt for off-the-shelf purchases of equipment in the future.

The government will participate through the entire development process “so that it has the option to go for a different partner in case of any technology denial”, said a senior government official involved in the move who spoke on condition of anonymity. “Foreign companies participating in Indian core sector will not be allowed to mask their origins and will have to go for full disclosure in case of any suspicion,” the official added.

While the Narendra Modi government is tight-lipped over the matter, the “verify the origin” debate started in July after China threw all past bilateral agreements out of the window and transgressed into eastern Ladakh, resulting in a tense military standoff that is yet to be resolved. The transgression and a June 15 clash in the Galwan Valley that left 20 Indian troops dead, besides an unspecified number of Chinese casualties, triggered calls for a boycott of Chinese products. Since then, the power ministry has decided to put in place specific testing guidelines that require the country of origin of imported equipment to be disclosed and to ensure that there is no malware embedded in critical sector equipment.

“The new testing guidelines for power equipment are to ensure that the country of origin does not install a malware which can be activated

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