Dollar slips before inflation report, US-China tariff deadline
SINGAPORE (Reuters) The US dollar extended declines on Monday as investors watched for the outcome of events due this week, from Tuesday's key July US CPI data and deadline for Washington and Beijing to strike a deal tariffs, along with a Russia-US summit on Friday.The dollar index fell 0.2% to 98.073 after last week's fall of 0.4%. Against the yen, it traded at 147.46 , or 0.20% weaker than late US levels, with Japanese markets closed for the Mountain Day holiday.Crypto markets surged, with bitcoin rising 3% to $121,909.06, not far from its July 14 record of $123,153.22, after President Donald Trump's executive order on Thursday freed up cryptocurrency holdings in US retirement accounts.Ether was up 2.1% at $4,307.25, after touching its highest since December 2021 earlier in the session.Trade talks were also in focus as Trump's August 12 deadline for a deal between the US and China neared, particularly on chip policy.With the US and China seeking to close a deal averting triple-digit goods tariffs, a US official told Reuters that chip makers Nvidia and AMD agreed to allocate 15% of China sales revenues to the US government, aiming to secure export licences for semiconductors.The offshore yuan fluctuated between gains and losses, trading at 7.184 to the dollar, after weekend data showed China's producer prices fell more than expected in July, while consumer prices were unchanged.The Australian dollar fetched $0.6526, trading flat ahead of a rate decision by the central bank on Tuesday, in which it is widely expected to cut interest rates by 25 basis points to 3.60%, after second-quarter inflation missed expectations and the jobless rate hit a 3-1/2-year high.The kiwi was little changed at $0.59545, while the British pound traded at $1.3465, up 0.1% so far on the day.Elsewhere, personnel moves at key US monetary policy institutions were also in focus.US Treasury Secretary Scott Bessent said the new Federal Reserve chair should be someone "who can examine the whole organisation" as the Fed's mission covered many things outside of monetary policy and put its independence at risk, Japan's Nikkei newspaper said.
Among candidates the Trump administration is interviewing to lead the Bureau of Labor Statistics is E.J. Antoni, chief economist at the conservative Heritage Foundation, the Wall Street Journal said, citing a senior administration official.
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Hi Dubai
8 minutes ago
- Hi Dubai
How Finance Teams Can Use AI to Work Smarter
Artificial Intelligence is becoming an important part of how finance teams work. It is helping companies handle tasks faster, reduce errors, and make better decisions based on real-time data. According to an EY report, AI is already being used in many areas of finance, including automating invoices, detecting fraud, and improving forecasts. These changes save time for finance teams and allow them to focus more on planning and strategy. In the UAE, this shift is happening quickly. According to Credence Research, the AI in finance market here was valued at US$67 million in 2023 and is expected to reach US$514 million by 2032. The UAE's national AI strategy also aims for the technology to contribute 20% of the country's non-oil GDP by 2031, showing how strongly the government is supporting its growth. Think about your own finance team. What if closing monthly accounts took hours instead of days? What if you could spot cash flow problems before they happen? And what if tax calculations were automatically checked for accuracy before filing? In this article, we will look at how finance teams can use AI to work smarter. We will cover how it can simplify daily operations, improve decision-making, ensure compliance, reduce risk, and help teams focus on the work that really drives business growth. Streamlining Day-to-Day Financial Operations Finance teams spend a large part of their time on repetitive but essential tasks like processing invoices, tracking expenses, and reconciling accounts. These processes, when done manually, are time-consuming and prone to human error. AI makes them faster, more accurate, and far less stressful to manage. Automating Invoice Processing & ReconciliationsAI tools can read, verify, and process invoices automatically using technologies like OCR (Optical Character Recognition) and machine learning. Instead of typing data into the system, finance teams can simply upload or scan an invoice, and the AI extracts key details, checks them against purchase orders, and flags any mismatches. This can speed up processing by a significant margin, reduce duplicate payments, and create an automatic audit trail. Reconciliations also benefit greatly from AI. The system can match transactions across accounts in seconds, identify discrepancies, and even suggest corrections, removing the tedious back-and-forth that often slows down month-end closing. Simplifying Expense Tracking Expense management becomes much easier with AI-powered tools. Receipts can be scanned and automatically categorized under the correct expense code. The system can also spot unusual spending patterns or policy violations, ensuring that reports remain accurate and compliant. This not only saves hours of manual work but also provides finance teams with real-time visibility into company spending. When these daily tasks are automated, finance teams spend less time on data entry and more time on analysis, planning, and strategy. Accuracy improves, processing speeds increase, and decision-makers get faster access to the information they need to guide the business forward. Enhancing Decision-Making with AI Insights Traditional forecasting methods often rely on fixed assumptions and manual updates, which can make it harder for finance teams to respond quickly to changes. AI offers a more dynamic approach, using predictive analytics and scenario modeling to support better decisions. Predictive Analytics: Smarter Forecasts and Budgeting AI can analyze years of historical data alongside current market information to produce more accurate forecasts for cash flow, budgeting, and resource allocation. It identifies patterns and relationships that may not be obvious through manual analysis, allowing finance teams to spot risks and opportunities earlier. These forecasts update in real time, so plans stay aligned with the latest figures rather than static projections. This not only improves accuracy but also reduces the time spent preparing reports. Scenario Modeling: Preparing for Uncertainty AI-powered scenario modeling allows teams to explore different 'what-if' situations before making big decisions. For example, finance teams can see how changes in interest rates, supplier costs, or customer demand might impact cash flow and profitability. These simulations help leaders prepare for multiple outcomes, making the business more resilient to sudden market changes. When predictive analytics and scenario modeling work together, finance teams can make decisions with greater confidence. They are not only reacting to numbers but proactively planning for the future. This shift moves finance from simply reporting results to actively guiding the business toward its goals. Improving Accuracy and Compliance AI can help finance teams handle tax, audit, and regulatory requirements with greater precision and less stress, especially under the UAE's evolving rules. AI for Tax Calculations and Error-Free Reporting With corporate tax now in effect at 9% for most businesses, AI can map accounts to the right tax treatments, validate adjustments, and prepare draft returns that reconcile with the ledger before submission. For large multinationals, upcoming Domestic Minimum Top-up Tax rules make it even more important to have accurate, entity-level calculations, something AI can handle quickly by simulating effective tax rates and spotting missing data early. For VAT, which remains at 5%, AI can check each invoice line for correct tax codes, validate all required fields, and flag exceptions before filing. This reduces the risk of penalties from errors or incomplete reporting. Audit Readiness and Continuous Controls AI can automatically link reported figures to their source transactions, maintain version-controlled workpapers, and generate clear audit trails. Continuous controls monitoring also helps catch policy breaches—such as missing tax registration numbers or incorrect posting dates—in real time, so they can be fixed before period close. AI can also prepare submission-ready files in the correct format for portals like EmaraTax, speeding up the filing process. Ensuring VAT, Corporate Tax, and E-Invoicing Compliance For VAT, AI validates mandatory invoice details, ensures the correct place-of-supply rules are applied, and archives invoices according to retention requirements. For corporate tax, it can classify income and expenses, track transfer pricing data, and maintain a single source of truth for disclosures. E-invoicing, which is set to roll out in the UAE in the coming years, will require businesses to meet strict formatting and data standards. AI can generate invoices in the required structure, check them for accuracy before sending, and match e-invoice acknowledgements with accounting records to ensure consistency. What to Look For Seamless ERP Integration: Choose tools that connect easily with your existing systems like SAP, Oracle, Microsoft Dynamics 365, or your bank platforms. Look for built-in connectors or open APIs to avoid costly custom development. Choose tools that connect easily with your existing systems like SAP, Oracle, Microsoft Dynamics 365, or your bank platforms. Look for built-in connectors or open APIs to avoid costly custom development. Security and Auditability: The platform should have strong security certifications, role-based access control, and unalterable audit logs to keep sensitive financial data safe. The platform should have strong security certifications, role-based access control, and unalterable audit logs to keep sensitive financial data safe. Explainability and Controls: Opt for AI systems that allow human oversight, show how decisions are made, and maintain detailed version histories for compliance purposes. Opt for AI systems that allow human oversight, show how decisions are made, and maintain detailed version histories for compliance purposes. UAE Tax Support: Ensure the tool has built-in VAT and Corporate Tax configurations, supports the 2026 e-invoicing requirements, and can generate FTA-compliant audit files. Ensure the tool has built-in VAT and Corporate Tax configurations, supports the 2026 e-invoicing requirements, and can generate FTA-compliant audit files. Data Residency Options: For sensitive data, choose solutions that can store and process information within UAE-based cloud regions to meet regulatory requirements. Spend Management, Accounts Payable & Expenses Coupa: Comprehensive spend and procurement automation with AI insights, now available with UAE-based cloud hosting. Comprehensive spend and procurement automation with AI insights, now available with UAE-based cloud hosting. SAP Concur: Industry standard for travel, expense, and invoice automation, featuring AI-powered receipt scanning and policy checks. Accounting & VAT (SME to Mid-Market) Zoho Books (UAE Edition): FTA-accredited for VAT compliance with automated returns, audit file generation, and easy workflow automation. FTA-accredited for VAT compliance with automated returns, audit file generation, and easy workflow automation. TallyPrime: Popular desktop-based ERP with strong GCC VAT features, ideal for on-premises or hybrid setups. Treasury, Cash & Payments Kyriba: Advanced treasury and liquidity management with AI-driven cash forecasting, payment controls, and multi-bank connectivity. Planning, Forecasting & Scenarios (FP&A) Anaplan: Cloud-based connected planning platform with strong forecasting and scenario modeling capabilities, deployed locally in the region. Cloud-based connected planning platform with strong forecasting and scenario modeling capabilities, deployed locally in the region. Oracle Fusion Cloud ERP/EPM: Offers machine learning-assisted close, reconciliations, and planning, with UAE-based hosting options. Offers machine learning-assisted close, reconciliations, and planning, with UAE-based hosting options. Microsoft Dynamics 365 Finance: AI-enabled financial management integrated with Azure cloud services in the UAE regions. Tax Engines & E-Invoicing Readiness Thomson Reuters ONESOURCE: Widely used for VAT calculation and compliance, with features that help prepare for upcoming UAE e-invoicing requirements. Tool Best For Key Features UAE Tax Support Price Range* Coupa Large enterprises managing end-to-end spend AI-driven procurement, invoice automation, supplier management Can integrate VAT logic via ERP; supports local hosting $$$ SAP Concur Businesses with frequent travel & expense claims AI receipt scanning, policy checks, AP automation Configurable VAT reports $$–$$$ Zoho Books (UAE Edition) SMEs needing compliance + automation VAT return filing, FTA audit file, automated invoicing Full UAE VAT compliance, e-invoicing ready $ TallyPrime SMEs preferring desktop/hybrid setup GCC VAT support, ledgers, inventory, basic automation Full UAE VAT compliance $ Kyriba Multi-entity treasury & liquidity management AI cash forecasting, payment control, bank connectivity VAT not core, but integrates with ERP/tax engines $$$ Anaplan FP&A teams needing scenario modeling Driver-based forecasting, budgeting, collaboration VAT logic via integration $$$ Oracle Fusion Cloud ERP/EPM Enterprises standardizing finance & planning ML-assisted close, reconciliations, planning VAT logic built-in; UAE cloud hosting $$$ Microsoft Dynamics 365 Finance Microsoft stack users AI-assisted financial ops, automated reporting VAT logic built-in; UAE Azure hosting $$–$$$ Thomson Reuters ONESOURCE Complex tax compliance VAT determination, reporting, e-invoicing prep Full UAE VAT compliance $$–$$$ *Price range: $ = budget-friendly, $$ = mid-range, $$$ = enterprise-level investment. Implementing AI in a Finance Team Without Disruption Rolling out AI in finance works best when the process is gradual, collaborative, and aimed at solving real pain points. Start with a small pilot project that targets a process both high in value and easy to automate, such as invoice processing or expense tracking. Run it alongside your current system to measure accuracy, speed, and ease of use, and use those early results to build momentum across the team. If AI could instantly remove one bottleneck in your process, wouldn't it make sense to start there? Bring the right people into the discussion from the beginning — finance, IT, compliance, and leadership. Appoint a few team members as AI champions so colleagues always have someone to turn to for guidance. In the UAE, involving tax and compliance specialists early ensures VAT and corporate tax rules are built into the workflow from day one. Training should go beyond technical steps. It's about showing how AI changes daily routines and frees up time for more strategic work. Tailor sessions to different roles — accounts payable staff may focus on invoice scanning, while planning teams work with forecasting scenarios. A follow-up session after the first month helps address any challenges and fine-tune the approach. Change management is just as critical as the technology itself. Clearly explain the reasons behind the shift, share quick wins from the pilot, and keep feedback channels open so the rollout evolves smoothly. As adoption grows, measure success with clear KPIs — shorter invoice-to-post times, fewer VAT filing errors, reduced processing costs, improved cash flow forecasts, and a steadily rising percentage of the team using AI confidently within the first 90 days. AI in finance is evolving from automating tasks to becoming a true decision-making partner. As capabilities grow, teams will spend less time on data entry and more on interpreting insights, shaping strategies, and advising leadership. In the UAE, upcoming e-invoicing and corporate tax changes will make timely, accurate data even more critical. AI will take on much of the compliance workload, allowing finance professionals to focus on planning, investment evaluation, and long-term growth. Those who adapt early will be better equipped, more accurate, and more trusted as strategic partners. Also read: Factors to Consider When Creating a Digital Marketing Budget A well-planned digital marketing budget keeps spending focused, adaptable, and ready to deliver the highest returns in any market condition. How to Build Your AI Strategy in Dubai's Evolving Tech Ecosystem Transform your business with AI. 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The National
8 minutes ago
- The National
Trump says gold to be spared from tariffs
US President Donald Trump said on Monday that gold will be exempt from tariffs, days after a government posting caused uncertainty as to what is considered a safe haven asset. "Gold will not be tariffed," Mr Trump wrote on the Truth Social media platform, without offering further details. US gold futures were trading 2.36 lower at to $3,408.80 an ounce at 2.15pm ET. Gold prices hit a record high last week after the US Customs and Border Protection ruled that gold bars from Switzerland would be subjected to tariffs that Mr Trump had placed on the country. A White House official later said it would issue an order in the near future to exempt gold bars. Had the tariff gone into effect, Switzerland's gold exports would have faced the same 39 per cent charge as other goods. The Swiss Precious Metals Association on Friday also warned the tariffs could harm "the international flow of physical gold". "We are particularly concerned about the implications of the tariffs for the gold industry and the physical exchange of gold with the US, a long-standing and historical partner for Switzerland,' said Christoph Wild, the association's president. Barrick Mining chief executive Mark Bristow told Reuters before Mr Trump's announcement that the tariff's impact on miners would have been minimal. The price of gold is up more than 27 per cent this year as investors flock to it amid Mr Trump's on-again, off-again tariff agenda. Eyes are on a trade truce between the US and China that was set to expire on Tuesday. Washington and Beijing had imposed escalating tariffs on each other's goods this year, and the two countries had agreed to a 90-day pause in May that temporarily lowered them. Asked on Monday about the deadline, Mr Trump said: "We'll see what happens. They've been dealing quite nicely. The relationship is very good with President Xi [Jinping] and myself." Abramovich London A Kensington Palace Gardens house with 15 bedrooms is valued at more than £150 million. A three-storey penthouse at Chelsea Waterfront bought for £22 million. Steel company Evraz drops more than 10 per cent in trading after UK officials said it was potentially supplying the Russian military. Sale of Chelsea Football Club is now impossible. Structural%20weaknesses%20facing%20Israel%20economy %3Cp%3E1.%20Labour%20productivity%20is%20lower%20than%20the%20average%20of%20the%20developed%20economies%2C%20particularly%20in%20the%20non-tradable%20industries.%3Cbr%3E2.%20The%20low%20level%20of%20basic%20skills%20among%20workers%20and%20the%20high%20level%20of%20inequality%20between%20those%20with%20various%20skills.%3Cbr%3E3.%20Low%20employment%20rates%2C%20particularly%20among%20Arab%20women%20and%20Ultra-Othodox%20Jewish%20men.%3Cbr%3E4.%20A%20lack%20of%20basic%20knowledge%20required%20for%20integration%20into%20the%20labour%20force%2C%20due%20to%20the%20lack%20of%20core%20curriculum%20studies%20in%20schools%20for%20Ultra-Othodox%20Jews.%3Cbr%3E5.%20A%20need%20to%20upgrade%20and%20expand%20physical%20infrastructure%2C%20particularly%20mass%20transit%20infrastructure.%3Cbr%3E6.%20The%20poverty%20rate%20at%20more%20than%20double%20the%20OECD%20average.%3Cbr%3E7.%20Population%20growth%20of%20about%202%20per%20cent%20per%20year%2C%20compared%20to%200.6%20per%20cent%20OECD%20average%20posing%20challenge%20for%20fiscal%20policy%20and%20underpinning%20pressure%20on%20education%2C%20health%20care%2C%20welfare%20housing%20and%20physical%20infrastructure%2C%20which%20will%20increase%20in%20the%20coming%20years.%3C%2Fp%3E%0A
Gulf Today
27 minutes ago
- Gulf Today
China sees ‘positive' outcomes as Trump's tariff deadline nears
Beijing is looking to Washington for 'positive' trade outcomes as a tariff truce between the world's two biggest economies remains in limbo, hours before higher tit-for-tat duties are due to return. While the United States and China slapped escalating tariffs on each other's products this year − reaching prohibitive triple-digit levels and snarling trade − both countries in May agreed to temporarily lower these levels. But their 90-day halt in steeper levies is due to expire Tuesday, with all eyes now on a path forward. 'We hope that the US will work with China to follow the important consensus reached during the phone call between the two heads of state,' said Chinese foreign ministry spokesman Lin Jian in a statement. He added that Beijing also hopes Washington will 'strive for positive outcomes on the basis of equality, respect and mutual benefit.' Although both sides reached a pact to de-escalate tensions after high level talks in Geneva in May, their truce has been shaky. In June, key economic officials convened in London as disagreements emerged and US officials accused their counterparts of violating the pact. Policymakers again met in Stockholm last month. But even as both countries appeared to be seeking to push back the reinstatement of duties, US trade envoy Jamieson Greer said last month that President Donald Trump will have the 'final call' on any such extension. Last week, US Commerce Secretary Howard Lutnick said in an interview that it is likely Trump will further the pause by another 90 days. The White House did not immediately respond to queries on the matter on Monday. Trump said in a social media post late Sunday that he hoped China will 'quickly quadruple its soybean orders,' adding that this would be a way to balance trade with the United States. For now, fresh US tariffs on Chinese goods this year stand at 30 per cent, while Beijing's corresponding levy on US products is at 10 per cent. Since returning to the presidency in January, Trump has slapped a 10-percent 'reciprocal' tariff on almost all trading partners, aimed at addressing trade practices Washington deemed unfair. This surged to varying, steeper levels last Thursday for dozens of economies. Major partners like the European Union, Japan and South Korea now see a 15-percent US duty on their products, while the level went as high as 41 per cent for Syria. The 'reciprocal' tariffs exclude sectors that have been separately targeted, such as steel and aluminium, and those that are being investigated like pharmaceuticals and semiconductors. Trump has also taken separate aim at individual countries such as Brazil over the trial of former president Jair Bolsonaro, who is accused of planning a coup, and India over its purchase of Russian oil. The US dollar edged higher across the board on Monday, a day before the deadline for Washington and Beijing to strike a tariff deal and the release of a US inflation report that could help determine whether the Federal Reserve lowers borrowing costs next month. The dollar index was up 0.3% at 98.50 after last week's 0.4% fall. Against the yen, the US currency traded at 147.95 , up 0.1%. Japanese markets were closed on Monday for the Mountain Day holiday. The euro was down 0.2% at $1.1636, while sterling was down 0.3% at $1.34195. 'The buck is trading a little firmer against all peers, though the moves are overall modest in nature,' said Michael Brown, market analyst at online broker Pepperstone in London. 'A very modest hawkish repricing of Fed policy expectations appears to be helping the move along, likely driven by participants squaring up some positions ahead of the risk that tomorrow's CPI print presents,' he said. The dollar softened last week as investors adjusted their expectations for interest rate cuts from the Fed after soft data on US jobs and manufacturing. Fed officials have sounded increasingly uneasy about the labour market, signaling their openness to a rate cut as soon as September. Cooling inflation could cement bets for a cut next month, but if signs emerge that US President Donald Trump's tariffs are fuelling price rises, that might keep the Fed on hold for now. 'It's important to note ahead of tomorrow's data that the bar for a hawkish surprise is higher,' said Francesco Pesole, FX strategist at ING. Pesole added that a 0.3% monthly rise in core CPI would give the Fed room to lower interest rates, given the deterioration in the labour market. Economists polled by Reuters expect core CPI to have risen 0.3% in July, pushing the annual rate higher to 3%. Money market traders are pricing in around a 90% chance of a rate cut next month, while 58 basis points of easing are priced in by year-end, implying two quarter-point cuts and around a one-in-three chance of a third. Personnel moves at the Fed have also weighed on the dollar recently. Trump is preparing to install rate-setters that support his dovish views on monetary policy, including a new chair for when Jerome Powell's term ends in May. Trade talks were also in focus as Trump's August 12 deadline for a deal between the US and China neared, particularly on chip policy. Most market participants expect the U.S.-China trade truce to be extended, Pepperstone's Brown said. Agencies
