&w=3840&q=100)
Rupee slips for third straight day on Trump tariff ruling; ends at 85.52/$
The Indian Rupee weakened on Thursday but remained range-bound near its opening losses, as the US dollar strengthened following a federal court's decision to block President Donald Trump's 'liberation day' tariffs.
The domestic currency closed 16 paise weaker at 85.52 against the US dollar, after ending at 85.36 on Wednesday, according to Bloomberg. The currency extended its fall to a third-straight day and is on course to end the month with a depreciation of 1.2 per cent.
From a technical standpoint, the dollar-rupee pair remains in a consolidation zone with resistance near 85.70-85.90 levels and strong support of 84.90-85.10 levels, according to Amit Pabari, managing director at CR Forex Advisors. "A breach on either side could pave a sharp movement in that direction."
A panel of three judges at the US Court of International Trade in Manhattan issued an order, siding with the view that Trump had wrongfully invoked an emergency law. This led to a strengthening of the dollar index, helping it climb back to the 100 level alongside a rally in the Wall Street equity futures contracts.
The dollar index, which measures the greenback against a basket of six major currencies, was up 0.13 per cent at 100.00. With See-saw tariff policies continuing to keep investors on edge, the dollar index has fallen 8 per cent this year. The Dollar also rose after the release of the latest FOMC minutes, which struck a notably cautious tone, according to Pabari. The dollar is expected to face resistance near the 101.50–102.00 zone, while immediate support lies around 99.50, he added.
On the economic front, growth in India's industrial production fell to an eight-month low of 2.7 per cent in April from an upwardly revised figure of 3.94 per cent in March.
Also Read
The market is currently consolidating within a range and is expected to remain so, supported by steady capital inflows into the country and consistent net equity purchases by foreign portfolio investors, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
13 minutes ago
- First Post
US imposes new Iran-related sanctions on 37 individuals and entities, including UAE firms
The sanctions, which target Iranian nationals and some entities in the United Arab Emirates and Hong Kong, were announced as US President Donald Trump's administration is working to get a new nuclear deal with Tehran read more Iran's and US' flags are seen printed on paper in this illustration taken on January 27, 2022. Reuters File The US has issued a new round of Iran-related sanctions targeting 10 individuals and 27 entities, including at least two companies it said were linked to Iran's national tanker company, the US Treasury Department said on Friday. The sanctions, which target Iranian nationals and some entities in the United Arab Emirates and Hong Kong, were announced as US President Donald Trump's administration is working to get a new nuclear deal with Tehran. STORY CONTINUES BELOW THIS AD Treasury's Office of Foreign Assets Control added Ace Petrochem FZE, and Moderate General Trading LLC, both registered in the UAE, to its Specially Designated Nationals List, freezing any of their US assets. OFAC said they are both linked to the state-owned National Iranian Tanker Company which is under US sanctions for exporting oil. Talks between Iran and the US that aim to resolve a decades-long dispute over Tehran's nuclear ambitions have been stuck over disagreements about uranium enrichment. Iran's mission to the United Nations in New York did not immediately respond to a request for comment.
Time of India
20 minutes ago
- Time of India
US-UAE multi-billion dollar AI data campus deal far from finalised, sources say
A multi-billion dollar deal to build one of the world's largest data centre hubs in the United Arab Emirates with U.S. technology is far from being concluded due to persistent concerns around security, sources familiar with the matter told Reuters. The U.S. and the wealthy Gulf state unveiled the massive artificial intelligence campus project set to contain a cluster of powerful data centres during President Donald Trump's two-day visit to Abu Dhabi last month. The planned 10-square-mile (26-sq-km) site is being funded by G42, an Emirati state-linked tech firm that is driving the development of its artificial intelligence industry. by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like Top Public Speaking Course for Children Planet Spark Book Now Undo Technology giants Nvidia, OpenAI, Cisco, and Oracle , along with Japan's SoftBank, are working with G42 to build the first phase, known as Stargate UAE, set to go online in 2026. The project, which plans to use advanced Nvidia AI chips , has been promoted by Trump officials as a win in steering Gulf states toward US technology over Chinese alternatives. Live Events But according to five sources briefed on the project, US officials have yet to determine the security conditions to export the advanced chips or how the agreement with the Gulf state will be enforced, leaving the deal far from resolved. Discover the stories of your interest Blockchain 5 Stories Cyber-safety 7 Stories Fintech 9 Stories E-comm 9 Stories ML 8 Stories Edtech 6 Stories During Trump's visit, Abu Dhabi pledged to align its national security regulations with Washington, including safeguards to prevent the diversion of U.S.-origin technology. But U.S. officials remain cautious about the UAE's close relationship with China, four of the sources said, noting that the concerns are consistent with those raised during both the Biden administration and Trump's first term, primarily around the Gulf state's reliability as a strategic partner. The sources did not specify whether new evidence had emerged, but said existing concerns remain unresolved. During Trump's first term, the UAE and other Gulf states moved forward with deploying Huawei 5G technology despite U.S. objections. Others in the administration also doubt whether the UAE, despite its intentions, can prevent U.S. technology from reaching Washington's adversaries, four of the sources said. A White House spokesperson referred Reuters to the Commerce Department, which did not respond to a request for comment. Neither did the UAE government. Four sources said the U.S. administration had no clear timeline for finalising the deal. Abu Dhabi would need to accept yet-to-be-defined U.S. controls on the technology, but it could also request amendments that may delay final approval, they said. Two sources said U.S. controls would likely prohibit the use of Chinese technology and restrict the employment of Chinese nationals at the site that is being referred to as an AI campus. The administration remains committed to concluding the deal, four of the sources said, but noted there was opposition among Republicans and Democrats over concerns regarding the UAE's ties with China. Stargate UAE is scheduled to come online next year with an estimated 100,000 advanced Nvidia chips. The 1-gigawatt project will use Nvidia's Grace Blackwell GB300 systems, currently the most advanced AI server that Nvidia offers. Although smaller than the U.S. state of Maine, the UAE is a influential Middle Eastern player known for its strategic hedging that has seen it forge close ties with China and Russia. Last year, under pressure from the Biden administration, G42 ripped out Chinese hardware and sold its Chinese investments. In return, it gained better access to advanced American technology, while Microsoft acquired a $1.5 billion stake in G42. Nevertheless, major Chinese firms Huawei and Alibaba Cloud remain active in the Gulf state, and an organised AI chip smuggling ring to China has been tracked out of countries including the UAE. The Gulf state has also become a hub for companies evading sanctions imposed on Russia since 2022 over the war in Ukraine. The Trump administration has said that American companies would operate the Emirati-built data centres and offer "American-managed" cloud services throughout the region. The so-called AI campus in Abu Dhabi is supposed to eventually host 5 gigawatts worth of data centres.
Mint
26 minutes ago
- Mint
Musk's Starlink gets DoT licence for satellite internet services
After a three-year wait, Elon Musk-owned Starlink has finally received the green light to launch its satellite internet services in India – a move that could provide connectivity in rural areas where physical infrastructure remains poor. The Department of Telecommunications (DoT) granted the company the critical Global Mobile Personal Communications by Satellite (GMPCS) licence on Friday, marking a major milestone in its entry into the Indian market. With this, Starlink becomes the latest entrant in India's satellite internet space after Eutelsat OneWeb and Jio Satellite. Notably, the licence for Startlink came within a month of the company securing a letter of intent (LoI) from the telecom department to start its services in the country. Also read: Elon Musk vs Donald Trump: POTUS to sell his 'beautiful' red Tesla amid spat with ex-DOGE chief - Report To be sure, Starlink still needs approval from the Indian National Space Promotion and Authorization Centre (IN-SPACe) for its constellation of satellites and the capacity it plans to deploy. The GMPCS licence allows companies to offer voice and data services through satellite. The licence is issued for a period of 20 years and allows companies to offer satellite communication services in licenced service areas. In addition to the GMPCS licence, Starlink has also received internet services provider (ISP) and very small aperture terminal (VSAT) licences from the government. Mint was the first to report on 7 May that Starlink had got the letter of intent after agreeing to comply with licensing conditions critical to national security. 'The company will be given the trial spectrum in the next few days to test its services and show compliance with the security norms," a government official said. The government has given allotted provision spectrum to OneWeb and Jio as well to comply with the security norms including lawful interception, network control and monitoring, geo-fencing of services and data localization. Compliance with conditions is essential for companies before starting satellite internet services commercially. Also read: Elon Musk vs Donald Trump feud: What's at stake here as Tesla boss takes on POTUS in this 'big, beautiful' fight? The licence comes as India looks to close a bilateral trade deal with the US to avoid a potential 26% reciprocal tariff before a 9 July deadline. Notably, Musk on 29 May announced his exit from the US president Donald Trump's administration and stepped down from his role as head of the Department of Government Efficiency (DOGE). Starlink had applied for a GMPCS licence in 2022, a key regulatory requirement for satellite-based communications in India. The company had started taking bookings for its satellite-based services from Indian customers in 2021, without even getting the licence. The company was then directed by the government to call off such bookings as these could not be done without a licence. In compliance with the DoT order, the company returned the booking amounts to over 5,000 pre-booked customers. Besides In-SPACe approval, Starlink's launch of satellite services in the country is also pending on the government's allocation of spectrum via non-auction route. The Telecom Regulatory Authority of India (Trai) has recommended administrative allocation of spectrum, as opposed to auctions, for satellite internet services. It said satcom companies will have to pay annual spectrum charges of either 4% of their adjusted gross revenue (AGR) or ₹3,500 per MHz, whichever is higher. The recommendations are pending with DoT and the government is expected to notify the terms and pricing for spectrum allotment soon. Satcom operators will also have to pay an annual licence fee of 8% of AGR to the government as per current authorization terms of the DoT. This is similar to what telecom operators pay, which includes a 5% licence fee and 3% towards the Universal Service Obligation Fund (USOF). Also read: Elon Musk vs Donald Trump: Tesla boss' alleged baby mama Ashley St Claire joins debate; offers POTUS 'breakup advice Additionally, Trai has recommended an annual charge of ₹500 per subscriber for satellite service providers in urban areas. Starlink will now need to set up earth station gateways–ground-based facilities that connect satellites to local networks, a critical component for internet connectivity. In a letter dated 29 May to telecom secretary Neeraj Mittal, the Cellular Operators Association of India (COAI), alleged that the pricing for satellite spectrum recommended by the telecom regulator is non-transparent, unjustified, and does not lead to a level-playing field between telecom and satellite internet operators. Trai, however, had said that satellite services will be complementary and not be competing with terrestrial services. 'Since satellite spectrum is a shared pool, the two (terrestrial and satellite) cannot be priced at par," Trai chairman Anil Lahoti said in a press briefing on 9 May. Lahoti added that Trai has recommended assigning spectrum for five years as satcoms are currently in a nascent stage, and their business potential would emerge after some years of operations. Besides Starlink, Amazon's Kuiper is also in the fray to enter the country and is awaiting a nod from the government on its application. Analysts said Starlink's entry could help bridge the digital divide, particularly in rural areas where internet access remains limited. 'Forty percent of India's population does not have internet access, with rural areas comprising the majority of these cases. This represents a large market opportunity for Starlink," brokerage Bernstein had noted in a report dated 4 March. "The entry of Starlink into the Indian market along with other major players such as OneWeb and Jio Satellite Communications is a significant milestone for the telecom sector in India. It will be interesting to witness these key players roll out satellite-based services and its impact, specially in underserved and rural areas, where traditional terrestrial infrastructure has struggled to reach," said Harsh Walia, Partner at Khaitan & Co.
