Euro rises after US, EU agree to tariff deal
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The euro gained on Monday following the announcement of a framework trade agreement between the United States and the European Union, the latest in a flurry of deals to avert a global trade war Meeting in Scotland on Sunday, U.S. President Donald Trump and European Commission President Ursula von der Leyen announced the deal, which will result in a 15% tariff on EU goods, half what Trump had threatened to impose from August 1.Senior U.S. and Chinese negotiators are due to meet in Stockholm on Monday with an aim to extend a trade truce and prevent steep tariff hikes. Meanwhile, investor attention is shifting towards corporate earnings and central bank meetings in the U.S. and Japan."It could be a positive week, just purely from the fact that now we know the rules of the game, if you like," said Rodrigo Catril, senior currency strategist at National Australia Bank."Now that there is more clarity, you would think that not only in the U.S., but around the globe, there will be a little bit more willingness to look at investment, to look at expansions, and to look at where the opportunities are," he said on a NAB podcast.The euro stood at $1.1763, up 0.2% so far in Asia. The common currency rose 0.2% to 173.78 yen.Trump said the EU plans to invest some $600 billion in the U.S. and dramatically increase its purchases of American energy and military equipment. The pact is similar to one forged with Tokyo negotiators last week that will see Japan investing some $550 billion in the U.S. and a 15% tariff imposed on its cars and other imports.The baseline 15% tariff will still be seen by many in Europe as too high, compared with Europe's initial hopes to secure a zero-for-zero tariff deal.China is facing an August 12 deadline to reach a durable trade pact with the U.S. No breakthrough is expected in the U.S. and China talks in Stockholm, but analysts said another 90-day extension of a trade truce struck in mid-May was likely.The U.S. dollar advanced on Friday, bolstered by solid economic data that suggested the Federal Reserve could take its time in resuming interest rate cuts. Both the Fed and the Bank of Japan are expected to hold rates steady at this week's policy meetings, but traders are focusing on the subsequent comments to gauge the timing of the next moves.The dollar was little changed at 147.68 yen. The dollar index, which tracks the greenback against major peers, fell 0.1% to 97.534.Sterling traded at $1.34385, down almost 0.1%. The Australian dollar fetched $0.6576, up 0.2%, while New Zealand's kiwi dollar was flat at $0.6019.
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It is very much part of the DNA of Indian foreign policy. It would also be wrong to mistake non-alignment (or a variation thereof) as not valuing friendships, loyalty or solidarity: In fact, India's foreign policy history is rich with examples of friendships, loyalty and solidarity. In that sense, India's foreign policy is not about indecision; it's a constant search for autonomy, balance and agency. This is where the country's fascination with a multipolar world becomes crucial, for there is no genuine autonomy, balance and agency in world affairs without true multipolarity. Third, India's complaints about American unipolarity are on a steady decline, even as the rhetoric remains. It would be a mistake, however, to view New Delhi's rhetoric against unipolarity as merely, or primarily, directed against the US because today, New Delhi is less anxious about America's global unipolarity than a potential Chinese unipolarity in Asia. 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In an ideal world, New Delhi's articulations must make a clear distinction between American unipolarity and Chinese attempts at unipolarity in Asia, but doing so is not easy for a variety of reasons, including that New Delhi continues to resist aspects of American unipolarity and is not yet willing to acknowledge the possibility of Chinese unipolarity in Asia. But New Delhi's rhetoric against American unipolarity and hegemony, without openly resisting the growing Chinese regional hegemony or a potentially unipolar Asia, could have unintended consequences. Some US administrations, especially the current one, might interpret India's rhetoric against American unipolarity as personal rather than an academic exercise, for the most part. This could prompt an unhappy Washington to undercut India's geopolitical standing in the region, thereby indirectly aiding China's attempts at regional hegemony. This creates a paradox: India aims to counter Chinese unipolarity in Asia by promoting global multipolarity, which annoys the US, prompting it to marginalise India in the region, thereby ultimately aiding Beijing's efforts to establish hegemony in Asia. New Delhi's rhetoric against American unipolarity and hegemony could also prompt the US, which is losing influence in various parts of the world, to seek ways of strengthening its influence in spaces where it can — this could lead to accepting Chinese unipolarity in Asia. More so, if the US reacts negatively towards India, as it is doing now, it could create a fertile ground for China and Russia to fan the Indian rhetoric against the US, encourage India to proactively participate in forums and arrangements aimed at undermining US unipolarity, and generate confusion within India's strategic community about the true motives behind India's multipolarity rhetoric. 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