Dollar edges lower after US credit downgrade, Aussie pares losses before RBA
The U.S. dollar weakened in early Asian trade. This happened after a surprise downgrade of America's credit rating. Trade tensions also affected market sentiment. Moody's lowered the U.S. rating due to debt concerns. Scott Bessent mentioned possible tariffs. The dollar fell against the yen and Swiss franc. The Australian dollar saw a slight increase.
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The U.S. dollar trimmed a four-week gain in early Asian trade as markets digested a surprise downgrade of the U.S. government's credit rating and as lingering trade frictions weighed on sentiment.The greenback advanced 0.6% against major counterparts last week after a temporary trade truce between the United States and China eased fears of a global recession . But economic data pointed to rising import prices and waning consumer confidence. Moody's cut America's top sovereign credit rating by one notch on Friday, the last of the major ratings agencies to downgrade the country, citing concerns about the nation's growing $36 trillion debt pile."The focus on U.S. growth risks and the U.S. administration's policy agenda may have put the U.S. safe-haven status in question," said Mahjabeen Zaman, head of foreign exchange research at ANZ.U.S. Treasury Secretary Scott Bessent said in television interviews on Sunday that President Donald Trump will impose tariffs at the rate he threatened last month on trading partners that do not negotiate in "good faith."Meanwhile, Trump is facing resistance within his own party in pushing forward a sweeping tax cut bill that would add an estimated $3 trillion to $5 trillion to the nation's debt over the next decade.The dollar lost 0.3% to 145.22 yen. The greenback was also 0.2% lower against the Swiss franc, another safe-haven counterpart.The Australian dollar edged up 0.1% to $0.6409 after three days of losses. Markets have priced in a certainty for a quarter-point cut in the Reserve Bank of Australia 's 4.10% cash rate on Tuesday.The euro stood at $1.1185, up 0.2%. Sterling traded at $1.3299, up 0.1%.New Zealand's kiwi dollar rose 0.1% to $0.5888.
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First Post
an hour ago
- First Post
Trump new tariffs: How India stacks up against rest of Asia
US President Donald Trump's sweeping new tariffs — reaching up to 41 per cent — have redrawn global trade lines. India now faces a 25 per cent duty as negotiations stall, while Japan, Thailand and others negotiated reductions. With Asian markets wobbling and currencies sliding, what's next for the region? read more A customer holds hundred rupees Indian currency notes near a roadside currency exchange stall in New Delhi, India, May 24, 2024. File Image/Reuters United States President Donald Trump has launched one of his most sweeping trade actions, formalised in an executive order just hours before the August 1 deadline Trump himself had set. His new set of tariffs, aimed to 'rebalance' trade ties and reduce US deficits — are already prompting sharp responses from Asian governments and global markets. The executive order, which uses the president's emergency trade powers, outlines tariff rates as high as 41 per cent on selected imports. STORY CONTINUES BELOW THIS AD — including major economies like India, Japan, Taiwan, and South Korea — will see a surge in duties on products entering the US Goods from nations not covered in the directive will automatically face a 10 per cent tax. Trump's latest order spells out rates ranging from 10 per cent to 50 per cent across 69 countries, making it one of the largest single tariff changes in decades. The directive also imposes a 40 per cent tariff on goods rerouted through third countries to circumvent duties, sending a clear warning to companies relying on transshipment strategies. This provision builds on an earlier tariff order issued in April, which had already rattled trade routes. In explaining the move, Trump's order bluntly stated that some countries, 'despite having engaged in negotiations, have offered terms that, in my judgment, do not sufficiently address imbalances in our trading relationship or have failed to align sufficiently with the United States on economic and national-security matters.' On the eve of the deadline, Trump reinforced the tone on social media, writing: 'THE AUGUST FIRST DEADLINE IS THE AUGUST FIRST DEADLINE — IT STANDS STRONG, AND WILL NOT BE EXTENDED. A BIG DAY FOR AMERICA!!!' India's unresolved US trade fight India finds itself squarely in the spotlight. Despite weeks of discussions, New Delhi and Washington were unable to secure a tariff-reducing agreement. As a result, Indian goods will now face a 25 per cent duty — a rate that has caused immediate economic ripples. A senior US official, speaking to Reuters, summarised Washington's frustration: 'Our challenges with India, they've always been a pretty closed market… there are a host of other kind of geopolitical issues.' STORY CONTINUES BELOW THIS AD The official also linked the trade impasse to broader foreign policy considerations, noting, 'You've seen the president express concern about, you know, membership in Brics, purchases of Russian oil and that kind of thing.' A 3D-printed miniature model of US President Donald Trump, the Indian flag and the word 'Tariffs' are seen in this illustration taken July 23, 2025. File Image/Reuters The tariffs have already shaken Indian markets. The rupee slipped, opposition parties voiced outrage, and business groups warned about pressure on export-oriented sectors. Indian Commerce and Industry Minister Piyush Goel reassured Parliament that talks are still underway, saying the goal is to reach a trade pact by October-November this year. He stated that 'the government gives great importance to protecting farmers, entrepreneurs, and medium and small enterprises, and will take all needed steps to safeguard its national interest.' Yet US trade insiders caution that a breakthrough will not come quickly. India's refusal to open its agricultural sector — long considered one of the most sensitive areas of its economy — remains a sticking point, as does its continued purchase of Russian oil. STORY CONTINUES BELOW THIS AD Asia's responses — who gained, who lost The tariff changes have reverberated across Asia, with outcomes ranging from relief to frustration. Some nations secured reductions from earlier proposed rates, while others were saddled with some of the highest tariffs in the world. US President Donald Trump holds a chart next to US Secretary of Commerce Howard Lutnick as Trump delivers remarks on tariffs in the Rose Garden at the White House in Washington, DC, US, April 2, 2025. File Image/Reuters Japan negotiated one of the most significant rollbacks. Tariffs on Japanese goods will now sit at 15 per cent, down from the 25 per cent previously flagged, including critical relief for the auto sector. Chief Cabinet Secretary Yoshimasa Hayashi called the shift a stabilising step, saying the lower tariffs 'will reduce uncertainty regarding U.S. trade policy and lower the risk of a downturn in our economy and the global economy,' according to NHK. He pledged additional government financing support for small and medium-sized firms facing cost pressures. Thailand also saw its rate lowered — now 19 per cent, compared to an earlier proposed 36 per cent. Finance Minister Pichai Chunhavajira posted on X that the tariff figure 'reflects the close friendship and partnership between Thailand and the United States.' At the same time, he acknowledged the pain for exporters and farmers, promising 'comprehensive support measures,' including loans, subsidies, and tax breaks to help the economy adjust. STORY CONTINUES BELOW THIS AD Malaysia benefitted from a cut too. Prime Minister Anwar Ibrahim noted that tariffs would fall from 25 per cent to 19 per cent, telling Parliament, 'Tomorrow's [Aug. 1] general tariff rate will ease and not burden our economy.' Taiwan is now facing a 20 per cent temporary tariff. President Lai Ching-te said that if negotiations progress further, 'it can be expected that the tariff rate will be further reduced.' He also flagged that future discussions with Washington will address supply chain cooperation and the controversial Section 232 tariffs that were imposed years ago on 'national security' grounds. Cambodia, once facing one of the harshest penalties, became an unexpected winner. Its duty has been reduced dramatically from 49 per cent to 19 per cent. Prime Minister Hun Manet called the outcome 'good news for the citizens and economy of Cambodia,' while also publicly thanking Trump for 'initiating and pushing for ceasefire between [the] Cambodian army and Thai army' after recent border clashes. STORY CONTINUES BELOW THIS AD But not every Asian country escaped heavy hits. Syria tops the list with a crushing 41 per cent tariff. Laos and Myanmar are each staring at 40 per cent duties, rates that could disrupt their fragile export sectors. How India compares to the rest of Asia Trump's executive order includes an extensive list of Asian nations and the duties they now face on exports to the US: Afghanistan – 15 per cent Bangladesh – 20 per cent Brunei – 25 per cent Cambodia – 19 per cent Fiji – 15 per cent India – 25 per cent Indonesia – 19 per cent Iraq – 35 per cent Israel – 15 per cent Japan – 15 per cent Jordan – 15 per cent Kazakhstan – 25 per cent Laos – 40 per cent Malaysia – 19 per cent Myanmar (Burma) – 40 per cent Pakistan – 19 per cent Papua New Guinea – 15 per cent Philippines – 19 per cent South Korea – 15 per cent Sri Lanka – 20 per cent Syria – 41 per cent Taiwan – 20 per cent Thailand – 19 per cent Turkey – 15 per cent Vietnam – 20 per cent Vanuatu – 15 per cent The range shows how selectively Washington applied the policy — some countries, like Israel and South Korea, are at the low end with 15 per cent, while others like Syria and Myanmar sit at the top with 40-41 per cent. How Asian markets reacted Indian stocks slipped early on Friday: the Nifty 50 fell 0.35 per cent, and the BSE Sensex dropped 0.34 per cent. Across Asia, tech companies bore the brunt of investor jitters. In Japan, Tokyo Electron saw a staggering 17 per cent plunge, with Lasertec (– 4.67 per cent), Advantest Corp (– 2.51 per cent) and SoftBank Group (– 2.07 per cent) also in the red. South Korea's SK Hynix shed 5.12 per cent, and Samsung Electronics dropped 1.92 per cent. Taiwan's TSMC slid 1.72 per cent, while Hon Hai Precision Industry (Foxconn) managed to gain 1.12 per cent, bucking the downward trend. A stock broker reacts while monitoring the market on the electronic board displaying share prices during trading session at the Pakistan Stock Exchange, in Karachi, Pakistan. File Image/Reuters Currency markets reflected the same uncertainty. The US dollar index inched up 0.11 per cent to 100.73, showing traders' cautious shift into the greenback. The South Korean won dropped 0.53 per cent, dipping below 1,400 per dollar for the first time in nearly three months. STORY CONTINUES BELOW THIS AD The Taiwanese dollar fell 0.35 per cent, and China's offshore yuan weakened by 0.11 per cent to 7.2083, approaching a two-month low. Other Southeast Asian currencies also softened: the Thai baht lost 0.24 per cent, the Philippine peso fell 0.49 per cent, and the Malaysian ringgit dropped 0.42 per cent. The Singapore dollar remained steady at 1.284, and the Japanese yen was flat at 150.75. US data suggest these tariffs could ripple through consumer prices. The US Commerce Department reported that prices for home furnishings and durable household equipment rose 1.3 per cent in June, the sharpest increase since March 2022. Recreational goods and vehicles saw a 0.9 per cent rise — the highest since February 2024 — and clothing and footwear climbed 0.4 per cent. China, India and future trade battles While tariffs for most nations are now locked in, negotiations are ongoing for some of America's biggest trading partners. China has until August 12 to finalise what officials describe as a 'durable' tariff agreement. US Treasury Secretary Scott Bessent, speaking after trade talks in Stockholm, said that while progress has been made, the discussions 'still require President Trump's approval.' He noted that US negotiators 'pushed back quite a bit' on Chinese proposals. STORY CONTINUES BELOW THIS AD India's situation is more uncertain. The 25 per cent tariff is now in place, and US officials have hinted that more concessions will be necessary for any reduction. The gap between the two countries reflects both trade disputes and broader political concerns — including India's balancing act between Western partners and members of Brics, as well as its ongoing energy ties with Moscow. Trump, for his part, struck a confident tone, hinting at undisclosed deals. 'We have made a few deals today that are excellent deals for the country,' he told reporters, though he did not name which countries were involved or when announcements would be made. With inputs from agencies
Mint
an hour ago
- Mint
Figma stock rises 250% on $1.2 billion IPO debut, largest Day 1 pop in at least 30 years
Figma Inc.'s 250% surge in its debut session is the kind of coming-out party every startup dreams of when it goes public. The finely choreographed process for the $1.2 billion IPO, culminating in a fully diluted valuation of more than $65 billion, also puts rivals on notice that Figma's ambitions are expanding. The design and collaboration software company led by Dylan Field, who started the firm in 2012 with a friend from Brown University, soared above the $20 billion mark it would have fetched had a sale to Adobe Inc. not been scrapped in 2023. Shares of the San Francisco-based firm closed at $115.50 each on Thursday in New York, more than tripling the IPO price of $33 apiece. The trading gives Figma the largest first-day pop in at least three decades for a US-traded company raising more than $1 billion, data compiled by Bloomberg show. It also makes Field one of the world's richest people. Adobe's planned acquisition of Figma, which at the time would have been the biggest-ever takeover of a private software company, was panned by the Photoshop maker's shareholders, who sent its stock down nearly 17% the day the deal was announced. Today that deal looks like a bargain. Accounting for employee stock options and restricted stock units, including RSUs for Field, the company's fully diluted value is more than triple what Adobe had agreed to pay in cash and stock. Figma may never again be so cheap, and as it battles with Adobe and Australian startup Canva Inc. to dominate the use of artificial intelligence in creative tools, the company's soaring shares may open the door to some dealmaking of its own. Investors have handsomely rewarded Figma for its rapid growth, and the IPO's bankers made sure their enthusiasm wouldn't go unnoticed. Figma launched its listing on July 21 with its eye on a fully diluted valuation of as much as roughly $16 billion, well below the figure in the Adobe deal. That target was still positioned as a victory, coming after a tender offer last year valuing the design-focused company at $12.5 billion. Still, few market-watchers thought Field and his bankers from Morgan Stanley, Goldman Sachs Group Inc., Allen & Co. and JPMorgan Chase & Co. would stop there. The marketed range was raised on Monday to $30 to $32 a share from $25 to $28. The shares offered in Figma's IPO were ultimately more than 40 times oversubscribed, with more than half of the orders receiving no stock, Bloomberg News reported. The pacing almost perfectly mirrored Circle Internet Group Inc.'s debut in June, which similarly laddered its price and share count increases ahead of its 168% first-day pop. A key question for Figma's long-term success is whether it can become a tool used by office workers beyond designers. The company's suite of tools is seeing strong adoption by software developers, product managers, and marketers, said Andrew Reed, a partner at Sequoia Capital and a member of Figma's board. Sequoia, one of the most storied Silicon Valley venture firms, first invested in Figma in 2019. Around that time, companies were beginning to adopt Figma's product en masse, Reed said. Like many software firms, Figma charges clients based on the number of users and the kind of seat those users have. It added Dev Mode to the platform in 2023 to enable closer collaboration with developers, and has more recently incorporated AI technology into many of its own tools. This year it introduced Figma Make, an AI-based product that lets the user turn prompts into functional prototypes. The use of AI-focused software creation apps that are potential competitors to Figma, such as Lovable and Bolt, has rapidly increased this year. Weaving AI features into Figma's products is a top priority, Field said in an interview. 'We have so much room to explore how we can make great AI products and experiences.' Figma's financial metrics stand above most large-cap software companies, with growth north of 40%, a net-dollar retention rate of over 130% and high pricing power given the lack of a credible rival. - Anurag Rana and Andrew Girard, technology analysts Going public allows Figma to have a big brand moment which centers the importance of design, Field said. 'This is a time where we can create tremendous value for our community, our customers, and I think the public market is the right place to do it.' AI isn't the only fashionable technology Figma is embracing. The company's board approved a $55 million investment in a Bitcoin ETF run by Bitwise Inc. last year, and signed off in May on a $30 million investment in the cryptocurrency, its IPO filings show. The company bought 30 million of Circle's stablecoin USDC, valued at $1 each, and plans to reinvest the holdings into Bitcoin directly. Figma has also authorized the issuance of blockchain stock that could lead to selling blockchain-based tokens as a form of its shares, though it currently doesn't have specific plans to do so, according to the filings. Figma's bulldozing IPO campaign has produced a well-capitalized company whose stock can be currency in acquisitions — one of the potential uses detailed in Figma's IPO filings — and whose growing footprint in creative work could make it a fierce rival to the company that once tried to absorb it. The company mentioned just two acquisitions in its filings, the largest of which is a $35.5 million deal for Payload, an open source headless content management system. Field likely has bigger deals on his mind, based on the founder letter included in the IPO filing. In an interview with Bloomberg TV, Field reiterated the pledge he made in the IPO filing's founder letter that the company would pursue M&A at scale. 'There's so much out there which can be applicable to the company when you think of the breadth of product design and development,' he said. 'It has to be an amazing team, an amazing asset, and has to be something where we think the team is culturally consistent.' After its acquisition plans were thwarted, Adobe discontinued XD, its most direct Figma rival. Like many software companies, Adobe's current focus is adding AI features to its flagship creative products like Photoshop. Australia-based Canva's AI features are intended to speed the design process. In April, the company introduced a conversation-based AI tool, which responds to voice and text prompts to edit photos, generate slide decks and re-size designs. The soaring share price also puts into play the performance-based awards Field has, including a 10-year 'moon-shot' compensation package awarded just last month that begins to vest once the 60-day average stock price exceeds $60. The highest hurdle requires shares to top $130. Field's stake is worth $6.1 billion. He will continue to control the company with 74.1% of the voting power after the IPO through his holdings of Class B shares that have 15 votes each, the filings show. The company sold 12.47 million shares in the IPO, which priced Tuesday, while investors including Index Ventures, Greylock Partners and Kleiner Perkins sold 24.46 million shares. The shares were marketed for $30 to $32 per share, after the company increased the range earlier in the week. The company's stock trades on the New York Stock Exchange under the symbol FIG.
Time of India
an hour ago
- Time of India
Holcim's sales dips 3.8% to 4.18 billion francs in Q2 2025
ZURICH: Holcim became the latest Swiss company to see the strong Swiss franc take a bite out of its figures when the building materials maker reported on Thursday its first earnings since separating its North American business. The Swiss cement and roofing products maker posted a drop in second-quarter sales in the three months to the end of June, as the rise of the safe-haven currency cancelled out local currency sales increases. The franc strengthened against the euro, Mexican peso, and Australian dollar after U.S. President Donald Trump's tariff announcements in April, reducing the level of sales abroad when translated back into Holcim's reporting currency. The company's reported sales fell 3.8% in the quarter to 4.18 billion francs, as foreign exchange effects cut 267 million francs from its top line. With currency effects removed, sales would have been 2.4% higher. CEO Miljan Gutovic said the stronger franc forced Holcim to be more efficient. "I'm a big fan of the Swiss franc, because its appreciation over the years is forcing us to be best in class," he told reporters, referring to the company's profit margins. "We always need to have a strict control on costs, we work on improving operational efficiency, and that is obviously having a significant impact on our margin extension." Although Holcim's profit rose, it was also held back by currency effects, which reduced operating profit by 81 million francs. In its first set of results since separating its North American business, the building materials maker posted a 1.2% increase in recurring operating profit to 955 million francs, ahead of analyst forecasts. Without translation effects, profits would have been 9.8% higher, as Holcim increased margins by selling more of its low-carbon cement and concrete and its recycled building materials. Holcim shares were up 0.6% in mid-morning trading. In its first guidance for 2025 after spinning off its North American business Amrize, Holcim said it expected to increase its operating profit, when measured in local currency, by 6-10%. It also guided for sales growth of 3-5% in local currencies.
