Inflows boost rupee to one-month high; trade deal optimism aids sentiment
The rupee rose to a peak of 85.20, its best level since late May, before ending the session at 85.31, up 0.4% on the day.
Dollar sales from foreign banks in the latter half of Thursday's session boosted the rupee, with the rise above 85.40 also triggering stop-losses on some wagers against the currency, traders said.
Asian currencies mostly rose, while the dollar index remained steady ahead of a key U.S. labour market report.
Most stock indices in Asia also gained on Thursday, after U.S.-Vietnam trade discussions raised the possibility of breakthroughs for other countries in the region ahead of the July 9 tariff deadline.
India's benchmark equity indexes though closed marginally lower.
U.S. and India trade negotiators were pushing on Wednesday to try to land a tariff-reducing deal ahead of President Donald Trump's July 9 negotiating deadline, per sources familiar with the talks.
"Given the U.S.-Vietnam trade deal and the looming July 9 deadline for the reciprocal tariff pause, markets are also alert to similar trade announcements with India and the European Union," DBS said in a Thursday note.
Traders reckon a trade deal with India could push the rupee above 85, but further gains would depend on foreign inflows and if the central bank steps in shore up its FX reserves via dollar purchases.
On the day, investors will also keep an eye on the U.S. non-farm payrolls report for cues on the future path of the Federal Reserve policy rates.
Economists polled by Reuters expect that the U.S. economy added 110,000 jobs in June, while the unemployment rate ticked up to 4.3%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Daily Mail
8 minutes ago
- Daily Mail
State leader's bold new plan to entice Donald Trump to Australia
US President Donald Trump will join a meeting of Australia's most important allies in Brisbane next year if the Queensland Premier can convince Anthony Albanese. David Crisafulli is campaigning for his state to host the next leaders summit of the Quad, the diplomatic partnership between Australia, India, Japan, and the US. 'I'm leading a campaign to get the Quad to Queensland,' he told an American Chamber of Commerce in Australia event in Brisbane on Friday. 'Australia is due to host it (next year), and I couldn't think of a more appropriate place than Queensland to have it.' He said he had floated the idea with the Prime Minister as recently as Thursday and he had been 'pretty persistent'. Crisafulli said he plans to travel to Japan and India along with representatives of Queensland universities in coming weeks to lobby for the opportunity. The last time global leaders descended on Brisbane was 2014 when it hosted the G20 summit, with guests including then US President Barack Obama and Russian leader Vladimir Putin. Crisafulli said Queensland did not get the 'buzz and recognition' some had expected from the summit, claiming its high-calibre invites had overshadowed the host city. He said he couldn't think of a 'more appropriate place' to host the Quad meeting and promoted commercial ties between Queensland and the United States. Crisafulli said Trump-era 'uncertainties' did not spell 'doom and gloom' but were a time of opportunity for the major trading partners. Australia is North America's biggest supplier of beef, with Queensland being responsible for roughly half of Australia's production of beef. He said demand for Queensland's resources will help offset impacts from the end of the US' country-specific tariff pause on July 9. 'It really plays into our strengths, what's happening on the trade front,' he said. 'Almost half of our exports at the moment are beef, and I see that as a good opportunity for a couple of reasons. 'First, the demand for Aussie beef isn't going anywhere in a hurry, and it will be a bedrock of great trade relationships for many years to come. 'But I also look at the new opportunities, and particularly with a lens of those tariffs over it, and how great that could be for Queensland. 'Start with critical minerals. Imagine an exemption for our critical minerals at a time when others are competing to get their products into one of our major markets.' Washington hosted this week's Quad meeting, where Australia sought to brand itself as an alternative to Beijing in the supply and processing of critical minerals. A meeting of foreign ministers from each member state agreed on a 'Quad Critical Minerals Initiative' designed to shore up global supply. The joint statement cited concerns over the 'abrupt constriction and future reliability of key supply chains, specifically for critical minerals'. 'Reliance on any one country for processing and refining critical minerals and derivative goods production exposes our industries to economic coercion, price manipulation, and supply chain disruptions, which further harms our economic and national security,' the statement said.
Reuters
an hour ago
- Reuters
Trump says tariff letters to 12 countries signed, going out Monday
July 4 (Reuters) - U.S. President Donald Trump said he had signed letters to 12 countries outlining the various tariff levels they would face on goods they export to the United States, with the "take it or leave it" offers to be sent out on Monday. Trump, speaking to reporters aboard Air Force One as he traveled to New Jersey, declined to name the countries involved, saying that would be made public on Monday. Trump had earlier on Thursday told reporters that he expected a first batch of letters to go out on Friday, a national holiday in the United States, though the date has now shifted. In a global trade war that has upended financial markets and set off a scramble among policymakers to guard their economies, Trump in April announced a 10% base tariff rate and additional amounts for most countries, some ranging as high as 50%. However, all but the 10% base rate were subsequently suspended for 90 days to allow more time for negotiations to secure deals. That period ends on July 9, although Trump early on Friday said the tariffs could be even higher - ranging up to 70% - with most set to go into effect August 1. "I signed some letters and they'll go out on Monday, probably twelve," Trump said, when asked about his plans on the tariff front. "Different amounts of money, different amounts of tariffs." Trump and his top aides initially said they would launch negotiations with scores of countries on tariff rates, but the U.S. president has soured on that process after repeated setbacks with major trading partners, including Japan and the European Union. He touched on that briefly late on Friday, telling reporters: "The letters are better ... much easier to send a letter." He did not address his prediction that some broader trade agreements could be reached before the July 9 deadline. The shift in the White House's strategy reflects the challenges of completing trade agreements on everything from tariffs to non-tariff barriers such as bans on agricultural imports, and especially on an accelerated timeline. Most past trade agreements have taken years of negotiations to complete. The only trade agreements reached to date are with Britain, which reached a deal in May to keep a 10% rate and won preferential treatment for some sectors including autos and aircraft engines, and with Vietnam, cutting tariffs on many Vietnamese goods to 20% from his previously threatened 46%. Many U.S. products would be allowed to enter Vietnam duty free. A deal expected with India has failed to materialize, and EU diplomats on Friday said they have failed to achieve a breakthrough in trade negotiations with the Trump administration, and may now seek to extend the status quo to avoid tariff hikes.
Reuters
an hour ago
- Reuters
Trump says 10 to 12 countries will get letters on tariff rate on Friday
WASHINGTON, July 4 (Reuters) - U.S. President Donald Trump said on Friday his administration later in the day will begin sending letters to 10 to 12 countries informing them of the tariff rate their products will face in the United States.
