&w=3840&q=100)
Indian Rupee ends at 85.34/$; slips 25 paise on dollar recovery
The Indian Rupee closed lower on Tuesday, weighed down by a rebound in the dollar index and oil prices, alongside a decline in domestic equities.
The domestic currency closed 25 paise weaker at 85.34 against the US dollar, after ending at 85.09 on Monday, according to Bloomberg. During the previous session, the currency rose past the 85 mark and went as high as 84.82 against the greenback.
The local unit was expected to be in a range of 84.75 to 85.50, with an expectation of a Zomato outflow of $900 million due to the MSCI rebalancing, according to Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP.
The US President Donald Trump, on Monday, extended the deadline for 50 per cent European Union tariffs until July 9. The dollar index, which measures the greenback against a basket of six major currencies, was up 0.43 per cent at 99.36.
The Dollar Index continuing to trade near the 99.00 level is acting as a tailwind for the rupee, Amit Pabari, managing director at CR Forex Advisors. "Add to that, subdued Brent crude prices are helping keep India's trade deficit under control." Moreover, the upcoming slew of initial public offerings is set to boost the FII inflows, further supporting the rupee.
However, speculation of a Reserve Bank of India (RBI) rate cut in the upcoming MPC meeting is also weighing on the short-term rupee, Pabari said. "The rupee is likely to face strong resistance near 85.50 levels and every uptick is a selling opportunity, while the immediate support would be 84.80-84.90." Meanwhile, profit booking among select blue-chip stocks at higher levels dragged the benchmark equity indices lower on Tuesday.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
4 minutes ago
- Business Standard
Global airlines to address trade war, net-zero risks at annual summit
An unpredictable trade war and daunting environmental targets are on the agenda for global airline bosses at an annual summit in India, as the industry's outlook is clouded by concerns that geopolitical uncertainty will dampen travel demand and raise costs. More people are flying than ever before after a full post-pandemic passenger market recovery, but airlines globally are facing rising cost pressures, extended plane delivery delays, lingering supply chain bottlenecks and falling airfares. On top of this, President Donald Trump's evolving trade war has upended the global aerospace industry's decades-old tariff-free status and added a new layer of volatility and risk. While carriers in Europe and Asia report strong demand for flying, the US airline sector has been hit by a recent slump in travel demand, with carriers struggling to forecast passenger behaviour and operational costs. The influential International Air Transport Association (IATA), which represents more than 300 airlines and over 80 per cent of global air traffic, will hold its annual three-day meeting from Sunday in New Delhi. The summit, hosted by India's largest carrier IndiGo, comes as the world's third-largest air passenger market rapidly expands its aviation industry, and as air travel growth in Asia is expected to outstrip Europe and North America for the next few decades. India's recent hostilities with neighbour Pakistan, which is causing Indian airlines to take large, expensive detours around Pakistani airspace, highlights how conflict zones are an increasing burden on airline operations and profitability. IATA said in February that accidents and incidents related to conflict zones are a top concern for aviation safety requiring urgent global coordination. Aviation safety will also be in focus after a spate of air accidents in Kazakhstan, South Korea and North America over the past six months, and rising concerns about air traffic control systems in the United States. NET-ZERO DOUBTS IATA has increasingly been warning that airlines will not meet their sustainability goals, and that it is not clear how the transition to sustainable aviation fuel (SAF) and new technologies will be financed. Airlines agreed in 2021 to target net-zero emissions in 2050 based mainly on a gradual switch to SAF, which is made from waste oil and biomass and costs more than conventional jet fuel. IATA Director General Willie Walsh has in recent weeks said the industry will need to re-evaluate the commitment. Airlines are being expected to bear the cost of the more expensive fuel and are not getting the support they need from SAF manufacturers, Walsh has said. Delays by Airbus and Boeing in delivering new, more fuel-efficient aircraft are also causing headaches for airlines. IATA said 1 million metric tons of SAF was produced globally in 2024, below forecasts of 1.5 million tons, and described production as disappointingly slow. "Demand for SAF continues to outstrip supply, and costs remain prohibitively high. Regulatory frameworks to encourage SAF production are still underdeveloped, inconsistent, or insufficient," said Subhas Menon, the director general of the Association of Asia Pacific Airlines. (Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
Indian Express
12 minutes ago
- Indian Express
How US President Trump's restrictions on AI chip sales to China affect Nvidia
Nvidia has said it expects tighter US export controls on its China-bound AI chips to wipe out $8 billion in sales in the coming quarter, even as the chip giant reported strong earnings and revenue for the first quarter of its fiscal year 2026, which ended on April 27. The US-based chip designer recorded year-over-year (YoY) growth of 73 per cent driven by surging demand in other global markets. Nvidia shares rose by 6 per cent the day after it reported earnings on Wednesday, May 28. The company reported revenue of $44.06 billion for the quarter, up by 69 per cent YoY, beating analyst estimates of $43.3 billion. Nvidia further said it expects about $45 billion in sales in Q2 FY26. Nvidia's quarterly report has allayed fears among investors that demand for its Graphics Processing Units (GPUs), used to train and deploy AI models like OpenAI's o3, is slowing down. The company's quarterly earnings were also closely watched by the tech industry for clues on how growing uncertainty from US President Donald Trump's tariff policies and export restrictions on AI chips to China, will affect Nvidia's international business. China is a key market for Nvidia, accounting for 13 per cent of its sales in the past financial year. In a bid to maintain its lead in the high-stakes AI race, the US government has sought to prevent the most advanced chips from being sold in China by tightening export rules. While Chinese competitors still lag behind Nvidia's cutting-edge chip design technology, several analysts have warned that the gap is narrowing. They have pointed out that US efforts to curb China's access to advanced semiconductors have not been successful due to loopholes and existing chip stockpiles in China. Some have even argued that the restrictions have counter-intuitively intensified competition against one of America's most valuable companies while cutting off access to a key growth market. The H20 processor was specifically designed by Nvidia to comply with existing limits by the US government. Chinese AI startup DeepSeek's R1 model is believed to be powered by a mixed stack of Nvidia's H800, H100, and H20 GPUs. Following the debut of DeepSeek's low-cost, compute-efficient AI model, several Chinese companies including Tencent, Alibaba, and TikTok parent ByteDance reportedly ramped up orders for H20 chips. The H20 is not Nvidia's most advanced chip and was primarily designed to get as close as possible to US export limits. However, it reportedly offers the same compute as advanced chips for a crucial step in developing large language models (LLMs) known as inference. This process involves running an LLM on previously seen data to identify the patterns it has learnt after the training stage. During the first quarter of fiscal 2026, the Trump administration reportedly told Nvidia that the H20 chip would require a separate export licence to be sold in China. Besides the expected $8 billion hit, Nvidia said it incurred $4.5 billion in charges related to excess inventory for the H20 chip. If not for the China-related charge, Nvidia said its gross margin of 61 per cent for the quarter would have been 71.3 per cent. Extra sales worth $2.5 billion would have been recorded in the reported quarter too, the company added. Notably, US export restrictions on chip sales to China show no signs of easing. The Trump administration has also ordered more companies, including firms that develop design software for semiconductors, to stop selling to China in the absence of a licence, according to a report by Reuters. In an earnings call on Wednesday, Nvidia CEO Jensen Huang told investors that the $50 billion market in China for AI chips is 'effectively closed to US industry.' 'The H20 export ban ended our Hopper data center business in China. We cannot reduce Hopper further to comply. As a result, we are taking a multibillion-dollar write-off on inventory that cannot be sold or repurposed. We are exploring limited ways to compete, but Hopper is no longer an option. China's AI moves on with or without US chips,' Huang said. Speaking at the annual Computex tech trade show held in Taiwan earlier this month, Huang said that Nvidia's market share in China had fallen from 95 per cent to 50 per cent over the past four years. However, on the earnings call, he also said that global demand for Nvidia's AI infrastructure was still going strong. 'Countries are racing to build national AI platforms to elevate their digital capabilities,' Huang added. The Trump administration has also rescinded the AI diffusion rule which was introduced by former US President Joe Biden at the start of the year. This rule essentially limited the number of US-made AI chips that could be sold in international markets, including India, without special approval by the US government. Nvidia and other US chip designers have long been lobbying against export controls to China as they fear losing out on a key market. Meanwhile, the success of DeepSeek and reports of Huawei's chip progress have led many to question the effectiveness of US-imposed chip controls. But even as these restrictions become more stringent, Nvidia's business is not likely to struggle as it continues to sell to major hyperscalers like Meta and Microsoft. 'On average, major hyperscalers are each deploying nearly 1,000 NBL72 racks, or 72,000 Blackwell GPUs per week, and are on track to further ramp output this quarter,' Colette Kress, the chief financial officer of Nvidia, said on the call. It is also reducing its reliance on big tech buyers by supplying for national AI initiatives such as the recently announced 500-megawatt AI infrastructure project in Saudi Arabia and a 5-gigawatt AI campus in the UAE under the US-led Stargate Project. 'Sovereign AI is a new growth engine for NVIDIA Corporation,' Huang said on the earnings call. Nvidia's net income rose by 26 per cent to $18.8 billion, up from $14.9 billion a year earlier. Sales from AI chips and related parts accounted for 88 per cent of the company's total revenue. Nvidia further said that half of the revenue from its data center business was from large cloud providers while the company's network products, commonly used to connect stacks of chips for AI research, saw $5 billion in sales. Meanwhile, the company's gaming division saw 42 per cent growth YoY to $3.8 billion. Besides being essential for AI development, Nvidia's chips are also used for gaming applications. The upcoming Nintendo Switch 2 gaming console will also be powered by a processor designed by Nvidia. Besides export controls, Nvidia shareholders were also focused on the company's rollout of its new GB200 NVL72 'thinking machines' that comprise 72 Blackwell GPUs and cost around $3 million, according to a report by TechCrunch. These systems are specially designed for reasoning. The new hardware began shipping in February this year, soon after the disruption caused by the launch of DeepSeek's R1. Many analysts had estimated that the chaos around DeepSeek would reduce the unit's estimated shipments by half. In its results, the company highlighted strong momentum in Blackwell-based systems as the GB200 NVL72 machines ramped to full-scale production during the quarter 'across system makers and cloud service providers.' 'Microsoft, for example, has already deployed tens of thousands of Blackwell GPUs and is expected to ramp to hundreds of thousands of GB200s with OpenAI as one of its key customers,' Nvidia CFO Colette Kress said on the call.
Time of India
12 minutes ago
- Time of India
Donald Trump rages against court ruling on tariffs, calls on Supreme Court to act quickly
US President Donald Trump US President Donald Trump wrote a fiery post on social media on Thursday night after a federal court ruling challenged the legality of his proposed tariffs, criticising the judiciary and taking aim at prominent conservative legal figures. The controversy stems from a recent decision by the US court of international trade, which on Wednesday ruled that Trump had exceeded his authority under the International Emergency Economic Powers Act (IEEPA) in attempting to implement new tariffs. However, a day later, the US court of appeals for the federal circuit issued a temporary stay, allowing the tariffs to remain in place for now. Reacting to the development on Truth Social, Trump blasted the court of international trade's ruling as 'incredible' and politically motivated. 'Where do these initial three Judges come from?' Trump wrote. 'Is it purely a hatred of 'TRUMP?' What other reason could it be?' In a striking departure from usual Republican rhetoric, Trump also lashed out at the Federalist Society, a conservative legal group influential in shaping his judicial nominations during his presidency. He specifically targeted Leonard Leo, co-chairman of the organisation's board, accusing him of giving 'bad advice' and harbouring personal ambitions. 'It was suggested that I use The Federalist Society as a recommending source on Judges,' Trump posted. 'I did so, openly and freely, but then realized that they were under the thumb of a real 'sleazebag' named Leonard Leo, a bad person who, in his own way, probably hates America.' by Taboola by Taboola Sponsored Links Sponsored Links Promoted Links Promoted Links You May Like गुड़गांव में बिक्री के लिए 3बीएचके फ्लैट (कीमतें जांचें) 3BHK Flat For Sale | Search Ads और जानें Undo Disappointment in judicial picks Trump expressed frustration over some of the judges he appointed while in office, blaming the Federalist Society for pushing names that he now regrets. 'I am very proud of many of our picks, but very disappointed in others,' he wrote. 'They always must do what's right for the Country!' Tariffs and legal battle continue Trump concluded his lengthy post by reiterating support for his proposed tariffs, which he insists are crucial for America's economic security. 'The ruling by the US Court of International Trade is so wrong, and so political!' he declared, expressing hope that the Supreme Court would overturn the decision 'quickly and decisively.' 'The President of the United States must be allowed to protect America against those that are doing it Economic and Financial harm,' he added.
