Rupee aided by foreign banks' dollar sales; Asia FX in holding pattern
MUMBAI, June 11 (Reuters) - The Indian rupee nudged higher in early trading on Wednesday, aided by mild U.S. dollar sales by foreign banks, while Asian currencies were steady after the U.S. and China agreed on a framework to ease trade tensions.
The rupee was at 85.46 as of 10:00 a.m. IST, up about 0.2% from its close at 85.6025 in the previous session.
The South Asian currency, alongside its regional peers, has witnessed range-bound price action over recent trading sessions as concerns over a trade war between the world's two largest economies eased, cooling volatility.
At the end of two days of negotiations, U.S. and Chinese officials said on Tuesday the framework also included removing China's export restrictions on rare earths.
U.S. Commerce Secretary Howard Lutnick said the framework deal puts "meat on the bones" of an agreement reached last month in Geneva to ease bilateral retaliatory tariffs.
"The latest talks appear to be a constructive step forward, reducing the risk of a full-blown trade war," MUFG Bank said in a note.
The positive conclusion of the talks "could help Asian currencies to consolidate their recent gains against the US dollar," the note added.
Meanwhile, Indian and U.S. officials also made progress in bilateral trade talks in New Delhi, according to Indian government sources.
On the day, modest dollar sales from at least two large foreign banks, likely on behalf of custodial clients, helped the rupee out, a trader at a state-run bank said.
U.S. consumer price inflation data will be in focus later on Wednesday for cues on the future path of the Federal Reserve's benchmark policy rates. Interest rate futures are currently pricing in about 43 basis points worth of rate cuts over the remainder of 2025.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
41 minutes ago
- The Independent
A look at Boeing's recent troubles after Air India crash
The crash of a Boeing 787 passenger jet in India minutes after takeoff on Thursday is putting the spotlight back on a beleaguered manufacturer though it was not immediately clear why the plane crashed. The Air India 787 went down in the northwestern city of Ahmedabad with more than 240 people aboard shortly after takeoff, authorities said. It was the first fatal crash since the plane, also known as the Dreamliner, went into service in 2009, according to the Aviation Safety Network database. Boeing shares fell more than 5% in pre-market trading. The 787 was the first airliner to make extensive use of lithium ion batteries, which are lighter, recharge faster and can hold more energy than other types of batteries. In 2013 the 787 fleet was temporarily grounded because of overheating of its lithium-ion batteries, which in some cases sparked fires. 737 Max The Max version of Boeing's best-selling 737 airplane has been the source of persistent troubles for Boeing after two of the jets crashed. The crashes, one in Indonesia in 2018 and another in Ethiopia in 2019, killed 346. The problem stemmed from a sensor providing faulty readings that pushed the nose down, leaving pilots unable to regain control. After the second crash, Max jets were grounded worldwide until the company redesigned the system. Last month, the Justice Department reached a deal to allow Boeing to avoid criminal prosecution for allegedly misleading U.S. regulators about the Max before the two crashes. Worries about the plane flared up again after a door plug blew off a Max operated by Alaska Airlines, leading regulators to cap Boeing's production at 38 jets per month. Financial woes Boeing posted a loss of $11.8 billion in 2024, bringing its total losses since 2019 to more than $35 billion. The company's financial problems were compounded by a strike by machinists who assemble the airplanes plane at its factories in Renton and Everett, Washington, which halted production at those facilities and hampered Boeing's delivery capability. Orders and deliveries The stepped-up government scrutiny and the workers' strike resulted in Boeing's aircraft deliveries sliding last year. Boeing said it supplied 348 jetliners in 2024, which was a third fewer than the 528 that it reported for the previous year. The company delivered less than half the number of commercial aircraft to customers than its main rival Airbus, which reported delivering 766 commercial jets in 2023. Still, Boeing's troubles haven't turned off airline customers from buying its jets. Last month the company secured big orders from two Middle Eastern customers. The deals included a $96 billion order for 787 and 777X jets from Qatar, which it said was the biggest order for 787s and wide body jets in the company's.
Reuters
an hour ago
- Reuters
Japan's business mood worsens as US tariff uncertainty takes toll
TOKYO, June 12 (Reuters) - Japan's business sentiment worsened in April-June for the first time in five quarters, a government survey showed on Thursday, a sign uncertainty over U.S. tariff policy was taking a toll on the country's export-heavy economy. An index measuring big firms' business confidence fell to -1.9 in the current quarter, following +2.0 in January-March, Ministry of Finance data showed. Manufacturers surveyed by the government expect recurring profit to fall 1.2% in the current fiscal year ending in March 2026, bigger than a 0.6% drop projected in the previous survey. Automakers and auto parts makers expect profits to plunge 19.8% in fiscal 2025, the survey showed, highlighting their concern over the expected hit from steep U.S. tariffs. The index indicates the ratio of companies that saw business conditions improve from the previous quarter, versus those who saw conditions worsen. A negative reading shows more firms saw conditions worsening.
Telegraph
2 hours ago
- Telegraph
Everything you need to know about the Boeing Dreamliner
How many Dreamliners have crashed? When did the Boeing 787 first come into service? What have been the Dreamliner's most serious incidents? Which airlines operate the 787? How is the 787 Dreamliner different from other aircraft? What other issues has Boeing faced? Is Air India safe? The Air India disaster in which a plane crashed moments after take-off in Ahmedabad is the first time that a Boeing 787-8 Dreamliner has been involved in a fatal accident. However, the aircraft has been beset by problems since entering service in 2011. The US Federal Aviation Administration (FAA) has investigated a number of concerns over the past decade, including faulty batteries and a flight that experienced a sudden drop in altitude. Here's everything we know about the aircraft, with a close look at its safety record over the years. How many Dreamliners have crashed? The Air India incident on June 12 2025 – involving an 11-year-old aircraft – is the first time the 787 Dreamliner has crashed. When did it first come into service? On October 26 2011, the Japanese airline All Nippon Airways (ANA) was the first to fly the Boeing 787 Dreamliner on a commercial service. This was four years after Boeing's original planned launch date, coming in millions of dollars over budget. Since that first flight, the Dreamliner fleet has carried more than one billion passengers across almost 5 million flights. What have been the Dreamliner's most serious incidents? In the early years after entering commercial service, the 787 faced a series of technical problems, including concerns around the safety of lithium-ion batteries. In early 2013, carriers including Japan Airlines and United Airlines reported issues with the wiring near the main batteries in some of their Dreamliners. That summer, a fire broke out on an empty Ethiopian Airlines plane at Heathrow due to crossed wires located under a battery. Norwegian Air also suffered a serious fuel leak due to a faulty valve on a 787, one of a number of problems experienced on the fleet. The airline's vice president later said: 'We're not satisfied with where the airplane is today, flying at a fleet average of 98 percent... The 777 today flies at 99.4 percent [...] and that's the benchmark that the 787 needs to attain.' There have also been concerns around the 787 Dreamliner's performance in certain weather conditions. In November 2013, Boeing issued an advisory for airlines flying the Dreamliner with a General Electric GEnx engine to avoid flying near thunderstorms because there was an increased risk of ice crystals building up on the engines. In March 2024, a LATAM Airlines flight experienced a sudden drop of 300ft of altitude within a few seconds. The plane landed at Auckland as planned, where 50 passengers were treated for injuries and twelve were taken to hospital. A preliminary report suggested the drop was due to the captain's seat involuntarily moving forward, rather than being caused by turbulence or poor weather conditions. Which airlines operate the 787? There are more than 1,100 Dreamliners in service worldwide. More than 50 airlines fly the Boeing 787. This includes many flag carriers such as British Airways, Air France, Emirates and American Airlines. British Airways flies all three variants of the Dreamliner (the 787-8, 787-9 and 787-10). It first added the Dreamliner to its fleet in 2013. How is the 787 Dreamliner different from other aircraft? British Airways describes it as 'one of the most technologically advanced aircraft' in its fleet. It has the largest windows of any commercial airliner. Instead of blinds, windows have dimmer switches. Within the cabin, a mood-lighting system creates the impression of daylight and nighttime to help passengers adjust to different time zones. The 787 is said to be one of the more environmentally efficient planes. It can fly for 10,000 miles without needing to refuel, and uses 20 per cent less fuel than similarly sized aircraft. Due to its fuel efficiency, the Dreamliner is favoured for long-haul flights. What other issues has Boeing faced? In 2018 and 2019, there were two major crashes involving the Boeing 737 Max in which 346 people died. The accidents, involving a Lion Air Flight in Indonesia and an Ethiopian Airlines flight, were linked to problems with the automatic stabilisation system, which the crew were unable to successfully override. There have been other issues with the 737 Max in recent years. In January 2024, a door plug ejected from an Alaska Airlines flight, causing decompression in the cabin. The subsequent FAA investigation found instances of manufacturing lapses. Boeing is also suffering lengthy delivery delays, in part due to more rigorous regulatory scrutiny after the cabin panel blowout, as well as supply chain disruptions. Is Air India safe? Air India has had a number of fatal accidents over the years. In August 2020, a Boeing 737-800 flying from Dubai to Calicut overshot the runway, killing 18 passengers. In May 2010, a 737-800 from Dubai to Mangalore overshot the runway, killing 158 passengers on board. Back in June 1982, an Air India plane crashed in Mumbai due to poor weather conditions, killing two crew members and 15 passengers. The year before, an Air India Flight from Zimbabwe to Mumbai was hijacked at Mahe Airport in the Seychelles. All 78 passengers were released. The first Air India incident was in 1978, when a plane crashed off the coast of Mumbai after the captain became disorientated. All 213 on board died.
