INR saw a consecutive 3rd day gain today. INR rallied between 75.60 and 75.96 before settling at 75.66 with an increase of 52 paise. The Dollar Index, with Greenback’s strength, saw a decline of 0.28% totalling at 99.58.
Forex investors saw hope and positive response from the Indian equity market that marked continuous surge in its stocks and weakening of US currency overseas. Other countries declaring relaxation in lockdown amid Coronavirus spread held investors sentiments high.
Crude Oil Up Again
Oil prices rebounded sharply on Wednesday as inventory rose less than expected and gasoline stocks decreased in the US. As a result, WTI crude futures saw a jump of 12.56% after dropping by 27% in the last two days totalling to USD 13.89. The US became the world’s largest oil producer today. Production cuts of around 3,00,000 BPD for coping up with the problem of fast filling storage. Brent Crude oil futures surged by 2.30% to USD 20.93 per barrel for June market. Crude oil prices rising INR may weaken against USD.
The crude oil price rose as hopes piled up after Gilead announced the success of Remdesivir. Also, it provided positive results for the Coronavirus treatment.
New Zealand, Australia and Europe ease up lockdown restrictions to resume business operations. It held the hopes high for producers and traders as short term demand may increase.
Gold & Silver Track Low Increase
As lockdown in some countries eases, pressure on gold has increased. The price of gold remains just above USD 1700 level. Investors’ sentiments rise as World plans for opening their economy and bringing it back on track.
Spot Gold price increased by 0.1% closing at USD 1708.53 per ounce. Gold futures marked an increase of 0.09% to INR 46109 per 10 grams. The market remains uncertain because of the increasing cases of Coronavirus.
Silver futures also marked a gain of 0.41% to INR 42518 per kg. The gold and silver prices increased because the US Dollar weakened.