Indian rupee loses against UAE dirham as Trump ups tariff threats on India
The currency managed to avert a drop past the record low of 87.95 (Dh23.96) to the dollar, likely due to intervention by the central bank, traders said.
The rupee opened at 87.85 (Dh23.93), compared to 87.6550 (Dh23.8841) on Monday (August 4). At one point, the non-deliverable forward market had indicated that the rupee would weaken past 88 at open.
"It was looking like a straight break of 88 at open, RBI came in and capped the move," a senior FX trader at a private bank said.
According to investing.com, higher tariffs herald increased pressure on the Indian economy, given its heavy exposure to the US as a market for exports. In 2024, India had a trade surplus of about $44 billion with the United States.
Trump's threat also comes just before a Reserve Bank of India meeting this week, where the central bank is widely expected to trim rates further in the face of increasing economic headwinds.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Emirates 24/7
14 minutes ago
- Emirates 24/7
ADNOC Gas signs 10-year LNG supply agreement with Hindustan Petroleum Corporation
ADNOC Gas plc and its subsidiaries announced the signing of a Heads of Agreement with Hindustan Petroleum Corporation Limited (HPCL) to supply 0.5 million metric tonnes per annum (mmtpa) of liquefied natural gas (LNG) for a 10-year term. The agreement underscores ADNOC Gas' expanded global footprint, particularly across the high-demand Asian LNG market, reinforcing its role as a reliable global supplier of LNG. The long-term contract strengthens ADNOC Gas' partnership with key Indian players as it continues to support India's energy security, building on recent agreements with Indian Oil Corporation and GAIL India Limited. Fatema Al Nuaimi, Chief Executive Officer of ADNOC Gas, said, 'This long-term agreement with HPCL, our third with Indian companies in the past year, reflects the robust energy partnership between the UAE and India. This milestone underscores ADNOC Gas' ability to reliably meet rising global demand for LNG and support India's ambition to increase natural gas to 15 percent of its primary energy mix by 2030.' The LNG will be supplied from ADNOC Gas' Das Island liquefaction facility, which has a production capacity of 6 mmtpa. As the world's third longest-operating LNG plant, Das Island has shipped over 3,500 LNG cargoes worldwide since starting operations. ADNOC Gas is a key player in ADNOC's strategy to enhance its natural gas production capacity and expand global LNG exports. As a crucial transitional fuel, natural gas offers lower carbon emissions compared to other fossil fuels and serves as an important raw material in industrial value chains. Follow Emirates 24|7 on Google News.
The National
14 minutes ago
- The National
UAE bucks global trend as non-oil trade rises
The UAE's non-oil foreign trade rose by nearly a quarter on an annual basis in the first six months of 2025, bucking the global trend as the Emirates continues to diversify its economy and forge trade international partnerships. The value of non-oil foreign trade for the January-June period jumped to more than Dh1.73 trillion ($470 billion), double the level of five years ago. In comparison, the average growth of global trade during the first half of this year was about 1.75 per cent. The UAE's foreign trade was worth Dh5.23 trillion ($1.4 billion) last year, a 49 per cent rise from the levels achieved in 2021. One important driver of the UAE's flourishing non-oil trade is the country's economic relationships with an expanding list of partner states. The country has signed 28 Comprehensive Economic Partnership Agreements (Cepa). This is opening new markets, boosting trade and investment flows, and removing tariffs. Abu Dhabi's non-oil foreign trade also jumped 34.7 per cent annually to Dh195.4 billion ($53.2 billion) in the first half of this year amid the emirate's diversification efforts. The emirate's exports, imports and re-exports rose from January to the end of June, Abu Dhabi Customs said.
ME Construction
an hour ago
- ME Construction
AMEA Power participates in second phase of Agadir desalination project
Construction AMEA Power participates in second phase of Agadir desalination project By Upon completion of the expansion, the Agadir desalination plant will boast a total capacity of 400,000m3 per day AMEA Power has announced its participation in the second phase of the Agadir desalination project in Morocco. The move marks the company's entry into the project, which will be powered by AMEA Power's 150MW wind project located in Laayoune. Once operational, this facility will become AMEA Power's inaugural water desalination plant in North Africa, the company said. Upon completion of the expansion, the Agadir desalination plant will boast a total capacity of 400,000m3 per day, solidifying its position as one of the largest desalination facilities in Africa. While the initial phase of the plant has been developed and is currently under the ownership of Spanish Cox, a water and energy management firm, the second phase will be delivered through a collaborative venture. AMEA Power will join forces with Cox, providing renewable energy through its wind farm in Laayoune. 'Our entry into the second phase of the Agadir desalination project in Morocco, under the Water Alliance Ventures platform, reflects AMEA Power's ambition to address both water and energy challenges through integrated solutions. This project is not only our first entry into the water sector in North Africa – it is also a powerful example of what long-term partnerships can achieve for sustainable development across the region,' said Hussain Al Nowais, Chairman of AMEA Power. This project holds significance as it represents the culmination of the joint venture agreement signed in May 2025 between AMEA Power and Cox. It embodies the shared vision of both companies to undertake integrated infrastructure projects that integrate access to water and energy. The total investment for the second phase of the desalination project and the associated wind power facility is projected to exceed US $272.5mn. The desalination expansion is anticipated to commence its operational phase at the end of 2026, while the wind farm is expected to come online in 2027. AMEA Power's commitment to Morocco, said to be a key market in its long-term strategy, is further solidified by this project. With several clean energy projects already in the works across the country, AMEA Power remains steadfastly aligned with Morocco's aspirations to advance renewable energy, water security, and sustainable development, the statement concluded.
