Rupee's upside capped by dollar bids from foreign and state-run banks
MUMBAI, June 25 (Reuters) - The Indian rupee edged higher on Friday as the dollar grappled with concerns over the future independence of the Federal Reserve and heightened expectations of cuts to U.S. benchmark interest rates.
However, dollar bids from foreign and state-run banks put a lid on the rupee's gains after it managed to rise above the 85.50 mark in early trading.
The currency was last quoted at 85.5375 against the dollar, up 0.2% on the day.
The dollar index was at 97.4, hovering close to an over three-year low, while Asian currencies were trading mixed. India's benchmark equity indexes, the BSE Sensex (.BSESN), opens new tab and Nifty 50 (.NSEI), opens new tab, logged slight gains.
Speculation that U.S. President Donald Trump may make an earlier-than-usual announcement of the next Federal Reserve chair, who is expected to be more dovish, has raised wagers on policy easing by the Fed.
That, in turn, has weighed on the greenback, which is already under pressure over concerns about U.S. trade and fiscal policies this year.
The dollar index is down over 10% year-to-date and is on track for its biggest first-half fall since the start of the era of free-floating currencies in the early 1970s.
BofA Global Research holds a bearish view on the dollar over the medium to longer term due to U.S. economic uncertainty, the overhang of eventual Fed cuts, alongside a push from global real money investors, who are in the early stages of increasing FX hedging of U.S. assets.
Meanwhile, the dollar-rupee overnight swap rate nudged higher on Friday, with traders pointing to sell/buy swaps from foreign banks, likely spurred by dollar inflows related to a large domestic IPO.
Bidding for Indian lender HDB Financial's $1.5 billion IPO is set to close on Friday. The issue was subscribed by nearly two times as of 11:30 a.m. IST.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
The Independent
33 minutes ago
- The Independent
What's in the latest version of Trump's big bill now before the Senate
At some 940-pages, the legislation is a sprawling collection of tax breaks, spending cuts and other Republican priorities, including new money for national defense and deportations. Now it's up to Congress to decide whether President Donald Trump 's signature's domestic policy package will become law. Trump told Republicans, who hold majority power in the House and Senate, to skip their holiday vacations and deliver the bill by the Fourth of July. Senators were working through the weekend to pass the bill and send it back to the House for a final vote. Democrats are united against it. Here's the latest on what's in the bill. There could be changes as lawmakers negotiate. Republicans say the bill is crucial because there would be a massive tax increase after December when tax breaks from Trump's first term expire. The legislation contains roughly $3.8 trillion in tax cuts. The existing tax rates and brackets would become permanent under the bill. It temporarily would add new tax breaks that Trump campaigned on: no taxes on tips, overtime pay or some automotive loans, along with a bigger $6,000 deduction in the Senate draft for older adults who earn no more than $75,000 a year. It would boost the $2,000 child tax credit to $2,200 under the Senate proposal. Families at lower income levels would not see the full amount. A cap on state and local deductions, called SALT, would quadruple to $40,000 for five years. It's a provision important to New York and other high tax states, though the House wanted it to last for 10 years. There are scores of business-related tax cuts. The wealthiest households would see a $12,000 increase from the legislation, which would cost the poorest people $1,600 a year, according to the nonpartisan Congressional Budget Office analysis of the House's version. Middle-income taxpayers would see a tax break of $500 to $1,500, the CBO said. Money for deportations, a border wall and the Golden Dome The bill would provide some $350 billion for Trump's border and national security agenda, including $46 billion for the U.S.-Mexico border wall and $45 billion for 100,000 migrant detention facility beds, as he aims to fulfill his promise of the largest mass deportation operation in U.S. history. Money would go for hiring 10,000 new Immigration and Customs Enforcement officers, with $10,000 signing bonuses and a surge of Border Patrol officers, as well. The goal is to deport some 1 million people per year. The homeland security secretary would have a new $10 billion fund for grants for states that help with federal immigration enforcement and deportation actions. The attorney general would have $3.5 billion for a similar fund, known as Bridging Immigration-related Deficits Experienced Nationwide, or BIDEN, referring to former Democratic President Joe Biden. To help pay for it all, immigrants would face various new fees, including when seeking asylum protections. For the Pentagon, the bill would provide billions for ship building, munitions systems, and quality of life measures for servicemen and women, as well as $25 billion for the development of the Golden Dome missile defense system. The Defense Department would have $1 billion for border security. How to pay for it? Cuts to Medicaid and other programs To help partly offset the lost tax revenue and new spending, Republicans aim to cut back some long-running government programs: Medicaid, food stamps, green energy incentives and others. It's essentially unraveling the accomplishments of the past two Democratic presidents, Biden and Barack Obama. Republicans argue they are trying to rightsize the safety net programs for the population they were initially designed to serve, mainly pregnant women, the disabled and children, and root out what they describe as waste, fraud and abuse. The package includes new 80-hour-a-month work requirements for many adults receiving Medicaid and food stamps, including older people up to age 65. Parents of children 14 and older would have to meet the program's work requirements. There's also a proposed new $35 co-payment that can be charged to patients using Medicaid services. Some 80 million people rely on Medicaid, which expanded under Obama's Affordable Care Act, and 40 million use the Supplemental Nutritional Assistance Program. Most already work, according to analysts. All told, the CBO estimates that under the House-passed bill, at least 10.9 million more people would go without health coverage and 3 million more would not qualify for food stamps. The Senate proposes a $25 billion Rural Hospital Transformation Fund to help offset reduced Medicaid dollars. It's a new addition, intended to win over holdout GOP senators and a coalition of House Republicans warning that the proposed Medicaid provider tax cuts would hurt rural hospitals. Both the House and Senate bills propose a dramatic rollback of the Biden-era green energy tax breaks for electric vehicles. They also would phase out or terminate the various production and investment tax credits companies use to stand up wind, solar and other renewable energy projects. In total, cuts to Medicaid, food stamps and green energy programs would be expected to produce at least $1.5 trillion in savings. Trump savings accounts and so, so much more A number of extra provisions reflect other GOP priorities. The House and Senate both have a new children's savings program, called Trump Accounts, with a potential $1,000 deposit from the Treasury. The Senate provided $40 million to establish Trump's long-sought 'National Garden of American Heroes.' There's a new excise tax on university endowments, restrictions on the development of artificial intelligence and blocks on transgender surgeries. A $200 tax on gun silencers and short-barreled rifles and shotguns was eliminated. One provision bars money to family planning providers, namely Planned Parenthood, while $88 million is earmarked for a pandemic response accountability committee. Billions would go for the Artemis moon mission and for exploration to Mars. The bill would deter states from regulating artificial intelligence by linking certain federal AI infrastructure money to maintaining a freeze. Seventeen Republican governors asked GOP leaders to drop the provision. Also, the interior secretary would be directed to sell certain Bureau of Land Management acreage to provide for housing. The sale of public lands would cover at least 600,000 acres and up to 1.2 million acres, according to a projection from the Center for Western Priorities, a conservation group. What's the final cost? Altogether, keeping the existing tax breaks and adding the new ones is expected to cost $3.8 trillion over the decade, the CBO says in its analysis of the House bill. An analysis of the Senate draft is pending. The CBO estimates the House-passed package would add $2.4 trillion to the nation's deficits over the decade. Or not, depending on how one does the math. Senate Republicans are proposing a unique strategy of not counting the existing tax breaks as a new cost because those breaks are already 'current policy.' Senators say the Senate Budget Committee chairman has the authority to set the baseline for the preferred approach. Under the Senate GOP view, the tax provisions cost $441 billion, according to the congressional Joint Committee on Taxation. Democrats and others say this is 'magic math' that obscures the true costs of the GOP tax breaks. The Committee for a Responsible Federal Budget puts the Senate tally at $4.2 trillion over the decade.
The Sun
35 minutes ago
- The Sun
Cristiano Ronaldo's Al-Nassr ‘plot £85million move for Liverpool's Luis Diaz' after handing Man Utd legend new deal
Cristiano Ronaldo's Al-Nassr are prepared to pay Liverpool £85million for Luis Diaz, reports claim. The Saudi Pro League side are in hunt for fresh talent after handing Ronaldo the most lucrative contract in sporting history. 5 5 With two years remaining on his Anfield contract, Diaz opened the door to a surprise exit after confessing he was in talks with other clubs. The 28-year-old winger played a key role in Liverpool's title-winning season, contributing 17 goals and eight assists in 50 appearances across all competitions. Liverpool haven't offered Diaz a contract extension and he could be marginalised after the £116million arrival of club-record signing Florian Wirtz from Bayer Leverkusen. According to a report by Okaz, Al-Nassr have set their sights on Diaz and are open to offering a staggering £85million. Journalist Ben Jacobs confirmed Al-Nassr's interest and hinted that while Liverpool currently have no intention of selling, such a huge bid could tempt the club's hierarchy to reconsider. The report did add that "the final decision is left to the player himself", with the Colombia international also strongly linked with cash-strapped Barcelona. Al-Nassr are planning a mega recruitment drive after missing out on Asian Champions League football next season and failing to win a title since Ronaldo, 40, joined from Manchester United in 2021. SunSport previously reported that Liverpool valued Diaz at £70million, so the club might be drawn in by banking £15million more. 5 CASINO SPECIAL - BEST CASINO BONUSES FROM £10 DEPOSITS But SPORT have claimed that Barca are "convinced" that they will finally land Diaz when the second-half of the summer window opens after the Club World Cup. His girlfriend, Gera Ponce, posted an emotional Instagram message which some fans believed was a farewell. Man Utd open to Rasmus Hojlund offers LATEST with Italian giants keen | Transfers Exposed She wrote under a slideshow of photos showcasing Diaz's triumphs in the 2024-25 season: "From the first day we arrived, we felt first hand what it means to be a part of this club. "We knew the slogan was 'You'll Never Walk Alone', but to hear them sing it with so much passion, support us every moment and show such unconditional love... confirmed to us that here you never walk alone. "This fanbase doesn't just support, it feels. And what you have made my boyfriend and our entire family feel is something we carry in our souls." But Liverpool boss Arne Slot is eager to keep Diaz for next season's title defence after his ever-growing £216MILLION reboot, with Jeremie Frimpong and Milos Kerkez joining over the last month.
The Independent
2 hours ago
- The Independent
Japan launches a climate change monitoring satellite on mainstay H2A rocket's last flight
Japan on Sunday launched a satellite to monitor greenhouse gas emissions using its mainstay H-2A rocket, which made its final flight before it is replaced by a new flagship designed to be more cost competitive in the global space market. The H-2A rocket successfully lifted off from the Tanegashima Space Center in southwestern Japan, carrying the GOSAT-GW satellite as part of Tokyo's effort to mitigate climate change. The satellite was released into orbit about 16 minutes later. Mitsubishi Heavy Industries, which operates the rocket launch, and Japan Aerospace Exploration Agency, will hold a news conference later Sunday to give further details of the flight. Sunday's launch marked the 50th and final flight for the H-2A, which has served as Japan's mainstay rocket to carry satellites and probes into space with a near-perfect record since its 2001 debut. After its retirement, it will be fully replaced by the H3, which is already in operation, as Japan's new main flagship. The launch follows several days of delays because of malfunctioning of the rocket's electrical systems. The GOSAT-GW, or Global Observing SATellite for Greenhouse gases and Water cycle, is a third series in the mission to monitor carbon, methane and other greenhouse gasses in the atmosphere. It will start distributing data in about one year, officials said. The liquid-fuel H-2A rocket with two solid-fuel sub-rockets developed by Japan Aerospace Exploration Agency has so far had 49 flights with a 98% success record, with only one failure in 2003. Mitsubishi Heavy Industries has provided its launch operation since 2007. H-2A successfully carried into space Japan's moon lander SLIM last year, and a popular Hayabusa2 spacecraft in 2014 to reach a distant asteroid, contributing to the country's space programs. Japan sees a stable, commercially competitive space transport capability as key to its space program and national security, and has been developing two new flagship rockets as successors of the H-2A series — the larger H3 with Mitsubishi, and a much smaller Epsilon system with the aerospace unit of the heavy machinery maker IHI. It hopes to cater to diverse customer needs and improve its position in the growing satellite launch market. The H3, is designed to carry larger payloads than the H-2A at about half its launch cost to be globally competitive, though officials say more cost reduction efforts are needed to achieve better price competitiveness in the global market. The H3 has made four consecutive successful flights after a failed debut attempt in 2023, when the rocket had to be destroyed with its payload.
