2025-07-10 02:55

MUMBAI, July 10 (Reuters) - The Indian rupee is likely to open marginally higher on Thursday, supported by the uptick in Asian peers and muted reaction to U.S. President Donald Trump’s latest tariff announcements. The 1-month non-deliverable forward indicated the rupee will open at 85.60-85.62 compared with 85.6725 in the previous session. Sign up here. The rupee has fluctuated between 85.30 and just below 86 over the past week, testing both sides of its recent range. In recent sessions, the rupee has been "choppy within a well-defined range," a currency trader at a private bank said. "The consensus trade right now—both among corporates and interbank—is to buy USD/INR near 85.20–85.40 and sell near 85.90–86.10," the trader said. "It makes sense when you consider that there have been no major trigger points." TRUMP'S TARIFFS Investors largely shrugged off U.S. President Donald Trump’s latest tariff salvo. Having already announced a 50% tariff on copper imports, Trump said the levies would take effect from August 1. Further, he threatened a punitive 50% tariff on Brazil's exports to the United States, while issuing tariff notices to seven smaller trading partners. Asian currencies and shares rose, indicating waning market sensitivity to Trump’s tariff moves. The dollar index inched lower. Meanwhile, minutes of the Federal Reserve's June meeting showed narrow support for rate cut later this month. Most participants at the Fed's meeting did anticipate rate cuts would be appropriate later this year, with any price shock from tariffs expected to be "temporary or modest". MUFG Bank noted that, looking ahead, the market’s attention may shift toward the Fed’s policy path, which will be key to shaping the dollar’s trajectory. KEY INDICATORS: ** One-month non-deliverable rupee forward at 85.70; onshore one-month forward premium at 8.75 paise ** Dollar index down at 97.35 ** Brent crude futures at $70.2 per barrel ** Ten-year U.S. note yield at 4.33% ** As per NSDL data, foreign investors bought a net $33.2mln worth of Indian shares on July 8 ** NSDL data shows foreign investors bought a net $138.2mln worth of Indian bonds on July 8 https://www.reuters.com/world/india/rupee-likely-open-slightly-higher-tracking-asia-trump-tariff-impact-muted-2025-07-10/

2025-07-10 01:32

Dollar to remain reserve currency but more susceptible to falls Bessent aware of risk that weak dollar accelerates US inflation Second Plaza Accord unlikely, Asakawa says TOKYO, July 10 (Reuters) - Japan is unlikely to face pressure from the United States to intentionally strengthen the yen despite President Donald Trump's criticism of its large trade surplus with the U.S., former top currency diplomat Masatsugu Asakawa told Reuters. Trump's focus on addressing the U.S. trade deficit and his remarks about Japan maintaining a weak yen have fuelled speculation about potential pressure on Tokyo to adjust the yen's value against the dollar and give U.S. manufacturers a competitive advantage. Sign up here. Asakawa said the dollar's status as a global reserve currency remains solid; however, it has become more susceptible to selling pressure following Trump's April 2 announcement of sweeping "reciprocal" tariffs. "If the dollar weakens, that accelerates U.S. inflation, a risk (U.S. Treasury Secretary Scott) Bessent is probably well aware of," he said in an interview late on Wednesday. "My understanding is that there is no specific discussion on currency matters between Bessent and (Japanese Finance Minister Katsunobu) Kato in the context of trade talks," Asakawa said. Asked about the likelihood of a coordinated dollar depreciation akin to the 1985 Plaza Accord in which Washington led the G7 advanced nations to weaken the U.S. currency, he dismissed the possibility. "A second Plaza Accord is unlikely," he said, citing the need for agreement from China and Europe. Asakawa retains close contact with incumbent policymakers. As vice finance minister for international affairs from 2015 to 2019, Asakawa was deeply involved in Japan's trade and currency negotiations with the U.S. during Trump's first term as president from 2017. During Trump's first term as president, then Japanese Prime Minister Shinzo Abe successfully persuaded the U.S. president to leave exchange-rate matters in the hands of their finance chiefs, Asakawa said. "Since then, the notion that currency matters should be left to the finance leaders appears embedded within the U.S. administration," he said. In their first face-to-face talks in April, Kato said he agreed with Bessent to continue "constructive" dialogue on currency policy, but did not discuss setting currency targets or a framework to control yen moves. The dollar index , which reflects its performance against a basket of six other currencies, has had its worst first half of the year since 1973, declining some 11%. So far this year, the dollar has fallen 7.5% against the yen . Asakawa said the outcome of bilateral trade negotiations was hard to predict, with Trump showing little sign of heeding Tokyo's efforts to gain concessions on automobile tariffs. Trump ramped up his trade war on Monday, telling 14 nations that they now face sharply higher tariffs from a new deadline of August 1. Japan would see tariffs go up to 25% from 10%, unless it can negotiate a deal with Washington. Japan has several cards it can use in trade talks with Washington such as pledging to boost investment in the U.S., reviewing domestic car safety standards and contributing to liquefied natural gas (LNG) projects in Alaska, Asakawa said. "Instead of presenting them incrementally, it's better to deliver them as a single package," he said. After heading the Asian Development Bank until February, Asakawa is currently president of the Tokyo-based Institute for International Monetary Affairs. https://www.reuters.com/business/japan-unlikely-face-us-pressure-strengthen-yen-ex-top-fx-diplomat-says-2025-07-10/

2025-07-10 00:51

WASHINGTON, July 9 (Reuters) - U.S. President Donald Trump announced on Wednesday a 50% tariff on copper, saying on social media that it would be effective August 1 and that the decision was made after a national security assessment. "Copper is necessary for Semiconductors, Aircraft, Ships, Ammunition, Data Centers, Lithium-ion Batteries, Radar Systems, Missile Defense Systems, and even, Hypersonic Weapons, of which we are building many," Trump said in a post on Truth Social. Sign up here. Trump signaled on Tuesday that he was imposing fresh tariffs on copper, sending U.S. Comex copper futures to record highs. https://www.reuters.com/world/us/trump-announces-50-tariff-copper-effective-august-1-2025-07-10/

2025-07-10 00:49

NEW YORK, July 9 (Reuters) - President Donald Trump's administration on Wednesday sued California over its regulation of eggs and chicken farms, saying that the state's anti-animal cruelty laws created "unnecessary red tape" that had raised egg prices throughout the U.S. The lawsuit, filed in Los Angeles federal court, argues that the federal Egg Products Inspection Act of 1970 pre-empts state laws related to eggs. The federal law authorizes the U.S. Departments of Agriculture and Health and Human Services to regulate eggs in order to protect consumers' health and welfare, and it also requires "national uniformity" in egg safety standards, according to the Trump administration's lawsuit. Sign up here. The California attorney general's office did not immediately respond to a request for comment. Since the federal law's enactment, California has passed several laws to regulate eggs and chicken farms, including voter initiatives passed in 2008 and 2018 that prevent farmers from packing chickens together so tightly that a hen is unable to "lie down, stand up, fully extend its limbs, and turn around freely." Those state laws aimed to reduce both animal cruelty and the risk of foodborne illness, but the U.S. government said in its lawsuit that only the federal government can regulate egg safety. California can regulate chicken farms within the state, but it cannot impose additional requirements on eggs from other states that are sold within California, according to the lawsuit. The California voter initiatives have survived previous challenges from farmers and other states. Six states – Missouri, Nebraska, Oklahoma, Alabama, Kentucky and Iowa – sued California over its egg regulations in 2014. The states who sued also argued that the federal law preempted California's laws, and they lost in both a federal district court and the 9th U.S. Circuit Court of Appeals. The U.S. Supreme Court in 2023 preserved one of the California voter initiatives, which was challenged in a lawsuit by pig farmers. The pig farmers had argued that California's 2018 ballot measure, which creates minimum space requirements for pigs and cows as well as chickens, impermissibly regulated out-of-state farmers. https://www.reuters.com/legal/litigation/us-government-sues-california-over-egg-prices-2025-07-10/

2025-07-10 00:41

July 10 (Reuters) - Australia's competition watchdog said on Thursday it would not oppose any potential bid from French dairy giant Lactalis to buy New Zealand-based Fonterra Co-Operative Group's (FCG.NZ) , opens new tab consumer, dairy ingredients and food service businesses. The Australian Competition and Consumer Commission's (ACCC) informal probe into the unannounced bid came after a Reuters report that firms including Japanese food manufacturer Meiji and Canada's Saputo (SAP.TO) , opens new tab were mulling bidding for the units Fonterra was seeking to divest. Sign up here. ACCC Deputy Chair Mick Keogh said in a statement that the potential acquisition was unlikely to result in a "substantial lessening of competition." New Zealand-based Fonterra announced in November its plan to either sell the units or list them through an initial public offering. Fonterra said in an emailed statement on Thursday that it was continuing "to pursue a dual track divestment process and no decisions have been made." Lactalis did not immediately respond to Reuters' requests for comment. Both Lactalis and Fonterra are major players in Victoria and Tasmania, buying large quantities of raw milk and producing a wide range of dairy products for domestic consumption. The competition regulator said in certain Victorian regions, alternative raw milk buyers would continue to compete with Lactalis, while in Tasmania, the French firm's limited presence would allow for fair competition with rival brands. Lactalis, one of the largest dairy products group in the world, owns a range of brands and sells everything from yoghurt to flavoured milk and desserts. Fonterra, New Zealand's largest dairy company, owns consumer brands such as Western Star, Mainland, and Perfect Italiano. "Fonterra stands to benefit from streamlining business operations by focusing on its core strengths in food service and ingredients," said Tom McBride, founder of McBride Wealth, a New Zealand-based financial advisory firm. https://www.reuters.com/sustainability/boards-policy-regulation/australias-competition-watchdog-not-oppose-lactalis-bid-fonterra-assets-2025-07-10/

2025-07-10 00:09

SYDNEY, July 10 (Reuters) - Australia's central bank said on Thursday it was taking another major step toward a wholesale central bank digital currency (CBDC) with a range of industry partners pursuing projects using real money and assets for the first time. The Reserve Bank of Australia said its "Project Acacia" initiative would test 19 pilot cases involving money and assets, along with five proof-of-concept use cases involving simulated transactions. Sign up here. The trials involve a range of asset classes, including fixed income, private markets, trade receivables and carbon credits. Proposed settlement assets include CBDCs, stablecoins and bank deposit tokens, as well as new ways of using commercial banks' existing deposits at the RBA. The platforms include Hedera, Redbelly, R3 Corda, Canvas Connect and other compatible networks. Testing will occur over the next six months, with a report due in the first half of next year, the RBA said. "The use cases selected in this project will help us to better understand how innovations in central bank and private digital money, alongside payments infrastructure, might help to uplift the functioning of wholesale financial markets in Australia," said Brad Jones, an RBA assistant governor overseeing the financial system. The RBA is concentrating on wholesale uses for a digital currency, having decided there was no economic benefit in an official retail cryptocurrency. According to the central bank, the benefits of a wholesale CBDC include reducing counterparty and operational risks, freeing up collateral, increasing transparency and auditability and reducing costs for institutions and customers. https://www.reuters.com/business/finance/australia-takes-another-step-toward-central-bank-digital-currency-2025-07-10/