DECEMBERASIA BUSINESS OUTLOOK9NEWSROOMEURO AND YEN SEE BLOWBACK FROM TRUMP SECURING THE US PRESIDENCYElon Musk's Starlink, the satellite internet provider, is working to comply with regulatory requirements in India and will be granted a license once it meets these conditions, Telecom Minister Jyotiraditya Scindia announced. Scindia highlighted the importance of compliance, including from a security perspective, and assured that Starlink is actively addressing the requirements needed to operate in India.The licensing process for satellite-based internet has sparked debate as Starlink, Amazon's Project Kuiper, and Indian telecom companies like Reliance Jio, Bharti Airtel, and Vodafone Idea compete in the broadband space. A key issue centers on how satellite spectrum should be allocated and priced. Indian telecom companies advocate for auctioned satellite spectrum for urban broadband services, which they argue would ensure a fair market, especially as global players like Starlink and Amazon expand in cities.However, global satellite operators, including Starlink, contend that auctioning isn't ideal since satellite spectrum is typically shared rather than exclusively held. They argue that administrative allocation would better support equitable access to satellite-based services. Starlink has even cited that if 5G spectrum can be shared among telcos, satellite spectrum should also be administratively allocated rather than auctioned.The issue was further heated last week during discussions between Starlink, Project Kuiper, and Indian telecoms. The telecom companies argued for auction-based allocation, pointing out that without auctions, global satellite companies could disrupt the market. Starlink, however, pushed back, stating that shared spectrum practices would create a level playing field without undermining local operators. The Telecom Regulatory Authority of India (TRAI) continues to consider input from both sides as it navigates this complex regulatory issue. The euro hit a nearly seven-month low against the U.S. dollar on Monday, driven by investor concerns over potential tariff policies under the incoming White House administration, which could pose economic challenges for the eurozone. Since Donald Trump secured the U.S. presidency last week, the euro has experienced a steady decline as markets anticipate possible tariff implementations that could disrupt EU-U.S. trade. The dollar rose 0.69 percent against the yen, reaching 153.69, recovering from last week's high of 154.70, though tempered by concerns over possible Japanese intervention. On Nov. 6, it briefly reached 154.68, its highest level since July.Reports on Friday indicated Trump may be considering Robert Lighthizer, known for his trade protectionism, for a former role in trade policy, further pressuring the euro. However, sources close to the situation noted that Trump hasn't officially requested Lighthizer's return to the trade agency."This is just a continuation of market reactions since the election," said Eugene Epstein, trading head at Moneycorp in New Jersey, emphasizing that "nations facing tariff threats are struggling against the dollar."The euro dropped 0.61 percent to $1.0654, briefly reaching a low of 1.0629, a level unseen since mid-April. Meanwhile, the U.S. dollar index, which measures the dollar's strength against a group of major currencies, hit post-election highs. It climbed 0.48 percent to 105.51, momentarily peaking at 105.70, its highest level since July. After Trump's win, the index surged over 1.5 percent to 105.44."There's a sense that markets are increasingly betting on a `red wave'," noted Bipan Rai, managing director at BMO Global Asset Management, referring to the Republican majority backing Trump. "This trend is supportive for the dollar."Proposed policies from President-elect Trump, such as tariffs and tax cuts, are projected to drive up inflation and bond yields, while potentially curtailing the Federal Reserve's ability to ease monetary policy, all of which strengthens the greenback. STARLINK EN ROUTE TO MEET REGULATORY REQUIREMENTS TO OPERATE IN INDIA
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