&w=3840&q=100)
Rupee snaps three-day fall; opens at 85.36/$ as dollar revival fizzles out
The Indian Rupee gained after three straight days of decline as the revival in the US dollar proved short-lived with the federal appeals court temporarily reinstating US President Donald Trump's tariffs.
The domestic currency opened 16 paise stronger at 85.36 against the US dollar, after ending at 85.52 on Thursday, according to Bloomberg. However, the currency is on course to end the month with a depreciation of 0.9 per cent.
On Thursday, the US Court of Appeals granted the Trump administration's request to temporarily pause the trade court's ruling to block 'liberation day' tariffs. Further, the higher-than-expected rise in the jobless numbers in the US also pressured the greenback, along with a 0.2 per cent decline in the March quarter economic growth.
The dollar index, which measures the greenback against a basket of six major currencies, was up 0.14 per cent at 99.43. With See-saw tariff policies continuing to keep investors on edge, the dollar index has fallen 8 per cent this year. The greenback is heading for its fifth straight monthly loss as traders braced for further bouts of uncertainty around trade and fiscal health, experts said.
The rupee is expected to open slightly stronger at 85.32, supported by daily flows, as the market reacts to weakening US jobless claims, which have started to show cracks, pulling down the US 10-year yield, Anil Kumar Bhansali, head of treasury and executive director at Finrex Treasury Advisors LLP. "We continue with the recommendation to sell dollars near 85.70/75 whenever we get the level, while we buy dollars on a cash basis."
India's gross domestic product (GDP) data for the final quarter of the previous financial year will be the key data to watch. 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."
In commodities, crude oil prices fell after a day of advance after an appeals court temporarily reinstated tariffs. Brent crude price was down 0.48 per cent to $63.84 per barrel, while WTI crude prices were 0.48 per cent lower at 60.65, as of 9:15 AM IST.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hindustan Times
13 minutes ago
- Hindustan Times
US, China trade row could ease after Trump-Xi talks: Treasury chief
US Treasury Secretary Scott Bessent said Sunday that President Donald Trump could speak with China's Xi Jinping "very soon," and that such a call could help break the logjam in the trade talks between the world's two biggest economies. Trump on Friday accused Beijing of violating a deal reached last month in Geneva negotiated by Bessent to temporarily lower staggeringly high tariffs they had imposed on each other, in a pause to last 90 days. China's slow-walking on export license approvals for rare earths and other elements needed to make cars and chips have fueled US frustration, The Wall Street Journal reported Friday a concern since confirmed by US officials. But Bessent seemed to take the pressure down a notch, telling CBS's "Face the Nation" that the gaps could be bridged. "I'm confident that when President Trump and Party Chairman Xi have a call that this will be ironed out," Bessent said, however noting that China was "withholding some of the products that they agreed to release during our agreement." When asked if rare earths were one of those products, Bessent said, "Yes." "Maybe it's a glitch in the Chinese system. Maybe it's intentional. We'll see after the president speaks with" Xi, he said. On when a Trump-Xi call could take place, Bessent said: "I believe we will see something very soon." Since Trump returned to the presidency, he has slapped sweeping tariffs on most US trading partners, with especially high rates on Chinese imports. New tit-for-tat levies on both sides reached three digits before the de-escalation this month, where Washington agreed to temporarily reduce additional tariffs on Chinese imports from 145 percent to 30 percent. China, meanwhile, lowered its added duties from 125 percent to 10 percent. In an interview with ABC's "This Week," Commerce Secretary Howard Lutnick said China was "slow-rolling the deal," adding: "We are taking certain actions to show them what it feels like on the other side of that equation." "Our president understands what to do. He's going to go work it out," Lutnick said. sst-gl/md
Hindustan Times
38 minutes ago
- Hindustan Times
Transforming India's innovation ecosystem
Classical growth models treated technology as an exogenous factor that drives development. However, modern growth theory suggests technology is an endogenous factor, a product of investments in education, innovation, and ideas. This has important implications for India's growth story. However, we have not yet fully leveraged our innovation potential. India's research and development (R&D) expenditure, as a percentage of gross domestic product (GDP), remains around 0.7% — in comparison, it is 5.2% for South Korea, 2.6% for China, and 3.6% for the US. To bridge this gap, the ₹1 lakh crore R&D fund announced in July 2024 and the fund of funds for deep tech announced in February 2025 must be operationalised at the earliest. While we are granting more patents than ever — over 100,000 granted in 2023-24 — most of them remain uncommercialised. A study by the Fraunhofer Institute reveals that, over the last decade, payments for intellectual property rights (IPR) have increased from $4.8 billion to $14 billion. The number of IPR receipts have doubled from 0.7 to 1.5 billion. Thus, there is a wide gap between payments and receipts. At the same time, global dynamics are shifting. Advanced economies are cutting funding for research departments and universities. In the US, tensions are escalating between Harvard University and the Trump administration. Norms on student visas are also becoming stricter in developed countries. This is an opportune time for India to make a strategic leap forward in building our innovation ecosystem. We need attract and retain talent, and we need the infrastructure. Existing schemes, such as the Visiting Advanced Joint Research Faculty (VAJRA) and the Global Initiative for Academic Networks (GIAN), are extremely limited in scope. We need to think big and bring the best Indian minds back to India. A dedicated national programme with two tracks can help do this. Under Track 1, we should aim to invite 500 top academics from the world's top 100 universities. These researchers should be required to spend six months of the year in India for the next five years. A startup grant of $1 million can be provided to set up research labs or projects. The goal should be to build local capacity. Track 2 can focus on offering sabbaticals to faculty from the world's top 200 universities. These sabbaticals can be supported by grants of $100,000, with annual top-ups. These researchers should be required to engage and mentor students, ensuring knowledge transfer and ecosystem development. We also need to build the requisite infrastructure for an innovation ecosystem. We need world-class innovation infrastructure, not just for design, but also for prototyping and testing — crucial for product development. Common prototyping labs and design studios in our academic institutes are one avenue. Advanced testing facilities and labs across sectors should be established, in and around clusters, in partnership with educational institutes. Our experience with digital public infrastructure (DPI) and open-access data provides a solid foundation. Take, for instance, the compute clusters being provided under the IndiaAI Mission. Similar models can be explored in deep tech areas. If we are to become a product nation, then the gap between academic and industrial research needs to be bridged. There are several successful models worldwide. The Warwick Manufacturing Group (WMG) is a pioneering example. Based at the University of Warwick, it brings together researchers and industry, innovating across sectors such as auto, healthcare, and batteries, among others. Not just industrial research, but the centre offers academic degrees at all levels, degree internships, and hosts a skills-centre. This can serve as a potential model for India to emulate in leading institutes or Institutes of Eminence (IoE). Each year, hundreds of thousands of our students go abroad to study in countries such as the US, the UK, Australia, and Canada. Increasingly, we are seeing countries tighten norms on student visas. Immigration routes are also becoming stricter post-education. While we spend hundreds of thousands of dollars on education, an alternative could be to invite these global universities to set up campuses in India. Monash University in Australia and the University of Nottingham in the UK, for instance, have set up campuses in Malaysia. New York University (NYU) set up campuses in Abu Dhabi and Shanghai. These universities collaborated with the government, industry, and existing academic institutes to establish and scale up operations. This would allow India to retain talent first, but also attract students from the Global South. Apart from playing an enabling role, governments worldwide have also given a boost to the innovation ecosystem by becoming key buyers of technology. The US' Defence Advanced Research Projects Agency (DARPA) is a pertinent example. DARPA catalysed breakthroughs like the internet and GPS, for instance. The Union government can play a similar role, catalysing innovations into real-world solutions, especially in the socio-economic sphere. Our socio-economic challenges require innovative solutions with a public purpose. India can take the lead in the technologies that will define the future — AI, quantum computing, green hydrogen, and semiconductors — through this approach. Grand challenges can play a catalytic role in this aspect. With outcome-based tenders and phased grants with buy-back commitments, the government can send strong market signals and reduce technology adoption risk. To emerge as a true innovation leader, India must act with urgency and ambition. The building blocks are clear — world-class talent, robust infrastructure, strong industry-academia linkages, and catalytic public procurement. These steps will help India transition from being a consumer of global technologies to a developer of frontier solutions. Transforming India's innovation ecosystem needs both direction from government policy and participation of private enterprise. This is not a time for incrementalism. We need to act boldly, and private enterprise must be at the heart of this transformation. Amitabh Kant is India's G20 Sherpa, and former CEO of NITI Aayog. The views expressed are personal Get 360° coverage—from daily headlines to 100 year archives.
News18
an hour ago
- News18
Trump's Aide In Constant Contact With India To Finalise Trade Deal: ‘Calling Every Day'
Last Updated: His remark came at the time when the US president has been constantly mentioning trade pressure while claiming credit for the ceasefire between India and Pakistan. US Trade Representative Jamieson Greer has said that Washington is in constant touch with New Delhi over trade deal discussions, adding that he has been speaking with India's top trade official nearly every day. Speaking to CNBC, he also revealed that negotiations with Malaysia and Vietnam are also in line, which he plans to take forward during the upcoming Organization for Economic Co-operation and Development (OECD) meeting next week. According to the top American trade negotiator, Washington may finalise tariff deals with many major countries in the coming weeks. His remark came a day after US President Donald Trump cited trade pressure and claimed credit for being able to stop 'potentially a nuclear war" between India and Pakistan. Trump has claimed several times in the last few weeks that he told India and Pakistan that the US will stop trade with the two nations if they don't stop the conflict. However, India has always refuted all such claims, saying the issue of trade did not come up at all in talks between Indian and American leaders during its military clashes with Pakistan. Commerce and Industry Minister Piyush Goyal recently met US Commerce Secretary Howard Lutnick in Washington to discuss the proposed bilateral trade agreement currently under negotiation between the two countries. On April 2, the US had imposed an additional 26 per cent reciprocal tariff on Indian goods. However, the additional tariff has remained suspended for 90 days. Watch India Pakistan Breaking News on CNN-News18. Get breaking news, in-depth analysis, and expert perspectives on everything from geopolitics to diplomacy and global trends. Stay informed with the latest world news only on News18. Download the News18 App to stay updated! First Published: June 01, 2025, 19:32 IST
