Indian Rupee traded between a high of 75.43 and low of 75.79 witnessing high volatility in the market. Forex market opened after a long weekend as INR marked a strong comeback after touching the low of 75.86 in the last session. The Rupee registered an increase of 44 paise to settle at 75.44 against US Dollar at 15:00 UTC.
The easing of lockdown restrictions across the globe and the weakening of the US Dollar index supported INR. US Dollar index traded at 99.42 with a downfall of 0.44%. The current market situations are very crucial, and forex investors will be cautiously watching for changes that can affect the economy.
Crude Oil Witness Consecutive Gains
Brent Crude oil rose by 1.4% to USD 26.03 per barrel. US WTI surged by 2.6% to USD 34.11 per barrel. The sudden rise in oil demand across the globe and production cuts in oil production supported the oil price to stabilize and rise. Rise in Crude oil prices to have a negative impact on the Indian Rupee.
OPEC+ to hold a meeting early in June to discuss production cut due to dropping prices. Russia announced meeting a target output of 8.5 million BPD as agreed by OPEC+ which boosted the market conditions. Russian oil producers are highly motivated to continue production cuts to avoid the situation faced in early March. The fast pace picking up of oil demand is helping oil producers and traders gain momentum and boosted confidence.
Gold Price Rises with Rising Tension
US Gold futures dropped by 0.1% to close at USD 1733.50 while Spot gold increased by 0.2% to USD 1732.38 an ounce. The rising tension between the US and China boosted the demand for gold.
Indian spot gold market is shut due to lockdown. While Indian gold futures witnessed a rise of 0.28% to INR 47105 per 10 grams. The rising coronavirus cases and the death toll in the country triggered fear among investors. Also, renewed tensions between the US and China over Hong Kong spread the fear making Indian financial market settle low. Coronavirus cases in India surged past 1.5 lac mark.