At a Glance
- 01US Customs will stop collecting tariffs deemed illegal by the US Supreme Court.
- 02IDFC First Bank shares fell after a ₹590 crore fraud was discovered.
- 03KPMG is conducting a forensic investigation into the IDFC First Bank fraud.
- 04The Indian rupee appreciated to ₹90.73 against the US dollar.
- 05India's forex reserves have reached record highs.
US Tariff Developments
US Customs and Border Protection (CBP) will cease collecting tariffs imposed under the International Emergency Economic Powers Act (IEEPA) following a US Supreme Court ruling deeming them illegal, but has not commented on refunds of the $175 billion collected. The Indian rupee is expected to open stronger following the US Supreme Court's decision to strike down the Trump-era emergency tariffs. However, a newly announced 15% duty may limit the rupee's gains. Indian markets are expected to show cautious gains after the US Supreme Court's tariff ruling.
Rupee and Forex Reserves
The Indian rupee has appreciated by 21 paise to ₹90.73 against the US dollar due to a weaker dollar and easing crude oil prices. India's foreign exchange reserves have reached record highs, boosting confidence in the rupee despite mixed global currency market signals. The 1-month NDF suggests an opening for the rupee at 90.78-90.82 per dollar, compared to Friday's close of 90.9825.
Banking Regulation and Fraud
IDFC First Bank shares have fallen after the disclosure of a suspected ₹590 crore fraud related to Haryana government accounts at its Chandigarh branch. IDFC First Bank has appointed KPMG for a forensic investigation, suspended four employees, and filed police complaints in response to the fraud. The RBI's proposed restrictions on bank funding for proprietary trading could lead firms to move operations offshore and negatively impact smaller players. The new RBI rules may halve margins and reduce derivative volumes by up to 20% due to the requirement of 100% collateral for broker funding.
AI Impact Summit
The AI Impact Summit Declaration presented a seven-pillar plan to guide global AI development, focusing on fair access, safety, energy efficiency, science, jobs, and global cooperation.
Market Conditions
Brent crude oil prices are hovering near $72 a barrel amidst Middle East tensions, requiring investors to remain cautious. The Nifty IT index extended losses last week, while the Nifty 50 and BSE Sensex closed higher.
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