Rupee rises 16 paise to close at 85.39 against U.S. dollar
Forex traders said Asian currencies, including the rupee, gained ground on renewed hopes of trade deals with the U.S.
U.S. President Donald Trump announced a trade agreement with Vietnam, and that injected a dose of optimism that perhaps more such agreements could be in the pipeline before the crucial July 9 deadline, according to forex traders.
At the interbank foreign exchange, the domestic unit opened at 85.44 against the American currency and touched an intra-day high of 85.30 and a low of 85.50 during the session.
The local unit finally settled at 85.39 (provisional), 16 paise higher than its previous closing price. On Thursday (July 3, 2025), the rupee pared initial losses and edged up 7 paise to close at 85.55 against the dollar.
'We expect the rupee to gain on the falling U.S. dollar and the weak tone in crude oil. However, uncertainty over trade tariffs may cap sharp gains,' Anuj Choudhary, Research Analyst at Mirae Asset Sharekhan, said.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.24% to 96.94.
Brent crude, the global oil benchmark, fell by 1.18% to $67.99 per barrel in futures trade. The USD-INR spot price is expected to trade in a range of 85.10 to 85.70, Mr. Choudhary said.
Meanwhile, in the domestic equity market, the Sensex advanced 193.42 points, or 0.23%, to close at 83,432.89, while Nifty rose 55.70 points, or 0.22%, to 25,461.00.
Foreign institutional investors (FIIs) offloaded equities worth ₹1,481.19 crore on a net basis on Thursday (July 3, 2025), according to exchange data.
On the domestic macroeconomic front, the Indian services sector growth touched a ten-month high in June, aided by robust expansion in international sales and job creation amid positive demand trends and ongoing improvement in sales, a monthly survey said on Thursday (July 3, 2025).
The seasonally adjusted HSBC India Services PMI Business Activity Index rose from 58.8 in May to 60.4 in June, driven by sharp upturn in new business orders.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
40 minutes ago
- Business Standard
UAE highlights scope for deeper trade, investment ties within Brics bloc
The United Arab Emirates, represented by Thani bin Ahmed Al Zeyoudi, Minister of Foreign Trade, has participated in the Brics Business Forum on the sidelines of the 17th Brics Summit in Rio de Janeiro, Brazil. During the Forum, Al Zeyoudi highlighted the UAE's strong relationships with Brics nations and the community's role in driving innovation, accelerating trade and creating opportunities for cross-border investment. Al Zeyoudi also promoted closer collaboration in key sectors, including logistics, agriculture, renewable energy, technology and healthcare. The Brics Business Forum gathered leaders and business representatives from the community's 10 member nations - Brazil, Russia, India, China, South Africa, Indonesia, Ethiopia, Egypt, Iran, and the UAE - to exchange views and ideas on how their public and private sectors can work together to navigate the world's current economic and geopolitical climate. The UAE's participation reflects its belief in constructive collaboration and its commitment to pursuing mutually beneficial global partnerships. The Forum resulted in the endorsement of several initiatives aimed at deepening economic cooperation as well as new private sector partnerships that will enhance trade and investment flows. Al Zeyoudi said the Forum provided an important opportunity to engage with a group of like-minded nations undergoing significant economic transformations: "The Brics community provides a compelling model for growth in the current economic climate. Each of us are seeking economic growth based on investment, innovation, entrepreneurship and trade relationships free from barriers and bureaucracy. This is how the UAE is building our next chapter of economic development, from attracting FDI and fostering new, technology-driven industries to securing free-trade deals with like-minded nations such as Brics members India, Indonesia and Russia. We are eager to maximize this relationship to the fullest extent and build upon these strong foundations in vital economic sectors including energy, logistics, technology, healthcare, and food security." Al Zeyoudi was in Brazil, joined by Saleh Ahmad Salem Alzaraim Al Suwaidi, the UAE's Ambassador to Brazil. The UAE and the Brics nations have been experiencing robust trade growth. In 2024, they shared non-oil trade worth USD 243 billion, a 10.5 per cent increase on 2023. The momentum has accelerated in 2025, with non-oil trade reaching USD 68.3 billion, a year-on-year growth rate of 18.2 per cent, and 2.4 per cent more than Q4, 2024. The UAE's total non-oil exports to Brics countries grew to USD 39.4 billion in 2024, nearly double the level from 2019, while re-exports reached USD 50.5 billion. The UAE ranks 14th globally among Brics trading partners and 5th when measuring internal trade among Brics nations, behind China, Russia, India and Brazil. The Brics community, which initially comprised of Brazil, Russia, India, China and South Africa before expanding to 10 nations this year, represents a significant portion of the global economy. It accounts for approximately 40% of the world's population and around 25 per cent of global GDP. The UAE became a member of Brics in 2024, reflecting its strategic focus on expanding diplomatic and economic ties with markets throughout the world to further enhance its role in driving global economic growth and prosperity.
Hindustan Times
an hour ago
- Hindustan Times
‘Take it or leave it' tariff letters ready, says US President Donald Trump
US President Donald Trump said on Friday he has signed letters to 12 countries outlining tariff levels they will face in what he described as 'take it or leave it' offers, with the communications set to go out on Monday. New Delhi and Washington have been attempting to thrash out a trade deal since Trump's February 13 summit with Prime Minister Narendra Modi, where both leaders agreed to more than double bilateral trade to $500 billion by 2030. (AFP) Speaking to reporters aboard Air Force One, Trump declined to name the countries involved. He also raised the stakes, saying tariffs could now reach as high as 70% - up from previously threatened levels of 50% - with most set to take effect August 1. 'I signed some letters and they'll go out on Monday, probably twelve,' Trump said, according to news agency Reuters. 'Different amounts of money, different amounts of tariffs.' India appears likely to be among the 12 countries receiving the letters, according to officials familiar with the matter in New Delhi, after intensive negotiations failed to produce a complete breakthrough that would have averted higher tariffs. 'It may not be surprising if India figures in the list because outcomes of the bilateral trade negotiations since March this year until middle of current week were not as per Trump's expectations,' said one person aware of the matter, speaking anonymously. 'Had it been so [if Trump accepted the terms], both Washington and New Delhi would have announced a deal by now.' Trump's announcement came immediately after India's negotiating team returned from Washington following week-long talks that began June 26 - the fourth face-to-face negotiating round since March. The team, led by chief negotiator Rajesh Agrawal, had been pursuing what officials called an 'early harvest' or mini trade deal. Fundamental disagreements remain over market access, with 'the US wanting unfettered access for American agriculture goods in the Indian market, a highly sensitive area for New Delhi as it involves the livelihood of millions of subsistence farmers,' the person said. India has consistently refused to fully open its agriculture sector, particularly around genetically modified crops and dairy products. The country remains unwilling to allow items like soybean and corn unless certified as non-GM, since such crops are banned domestically. Another major sticking point is 'duty-free access in the Indian automobile sector,' the person added. 'The Trump administration wants all without committing to withdraw the Liberation Day tariff, and other punitive tariffs on Indian steel, aluminium, automobiles and auto parts.' Faced with the deadlock, India escalated the dispute beyond bilateral channels, the person added. 'Hence on return of its negotiating team from Washington, India on July 3 put the US on 30-day notice at the WTO before suspending concessions or other obligations on American imports,' the person explained. Officials of the commerce ministry did not respond to requests for a comment on the matter. A second person said bilateral discussions continue through virtual channels and a breakthrough remains possible. 'If India's interest is served, an initial deal can still be achieved by July 9,' this person added, requesting anonymity. He added that 'irrespective of deadlines, India will not sign any deal that is not balanced, equitable and a win-win.' 'Both countries remain committed to reaching the first tranche of a bilateral trade agreement by October 2025, as directed by Modi and Trump during their February 13 meeting'. That broader deal would include services and investment provisions beyond the current focus on goods. New Delhi and Washington have been attempting to thrash out a trade deal since Trump's February 13 summit with Prime Minister Narendra Modi, where both leaders agreed to more than double bilateral trade to $500 billion by 2030. Despite the ambitious target, tensions escalated as Trump reimposed and expanded tariffs. In March, the US imposed 25% tariffs on steel and aluminium imports from all countries, ending exemptions that had protected some trading partners. On March 26, Trump added 25% duties on passenger vehicles, light trucks and certain automobile parts, specifically targeting imports from countries including India. The situation deteriorated further when Trump declared April 2 as 'Liberation Day,' announcing a global 10% baseline tariff plus additional country-specific levies. India faced a combined 26% tariff - the 10% baseline plus an additional 16% reciprocal tariff. Trump suspended the additional tariffs for 90 days to allow negotiations, but that reprieve expires July 9. India had initially demanded complete withdrawal of all punitive tariffs but softened its position to focus on partial relief in exchange for limited agricultural concessions. Commerce minister Piyush Goyal on Saturday defended India's approach, saying the country 'negotiates from a position of strength and not under deadlines.' He reiterated this position on Saturday when he rebutted opposition leader Rahul Gandhi's charge that the Modi government would 'meekly bow' to Trump's tariff deadline. Goyal accused the previous Congress-led United Progressive Alliance government of 'negotiating and signing agreements that were not in the national interest.' The day before, Goyal had emphasised that 'India never negotiates trade deals with a deadline' and would announce any agreement only when it is 'fully finalised, properly concluded and in the national interest.' Trump's ultimatum strategy reflects broader challenges in completing complex trade agreements on an accelerated timeline. Most traditional trade deals take years to negotiate, but Trump's administration has sought to compress that process into months. To date, Trump has reached agreements with only Britain and Vietnam. Britain secured a deal in May but accepted a pact to keep tariffs at 10% with preferential treatment for sectors including autos and aircraft engines. Vietnam, threatened with a 46% combined rate, negotiated a reduction to 20% with many US products allowed to enter duty-free. EU diplomats said on Friday they have failed to achieve a breakthrough and may seek to extend current arrangements to avoid tariff hikes.
Deccan Herald
2 hours ago
- Deccan Herald
Wok and roll!
Not just Bengaluru but all of India is witnessing a mushrooming of Pan-Asian restaurants — turning the old maxim 'If you want success, open a Hakka shop' into 'Make it Pan Asian.'
