USD/INR- The Indian Currency falls sharply on Thursday on the hawkish Fed. In fact, the rupee value was edging towards 73 fell to a 6 week low and increased to 74. Accordingly, it settled at 74.11on 17 June. The Indian rupee traded between 73.275 and 74.248 today. On the other hand, the dollar index increased today. Accordingly, its value rose and settled at 91.72 as of 8:31 AM EDT Thursday.
The US Dollar Indian Rupee exchange rate settles 1.15% higher today. The lockdown imposed in India resulted in the worst contraction of economy and mildly affecting the currency. The Indian currency is losing against the surging US Dollar. The US Dollar is getting strong following the US Federal Reserve’s surprise to the market that signaled the interest rate hike in 2023.
USD/ INR: Oil Prices
The US WTI crude oil prices began this week on a low. However, with the ongoing oil demand concern and the growing coronavirus pandemic, it is highly uncertain and its value continued to decrease today. Also, recent studies predict that the oil demand will not reach the pre-crisis level until 2023. Further, studies and expert hint that carbon trade might take over and grow 10 times bigger than the global crude oil market. Accordingly, crude oil decreased by 0.37% at 5:30 PM on 17 June to trade at USD 71.83 per barrel globally. At the same time, Brent Crude was set at USD 73.95 per barrel and traded at a rate of 0.59% lower.
USD/ INR- Gold Prices
Precious metal prices decreased despite the cases going down in India. Accordingly, gold futures decreased by 2.86% or 1389.00 Rupees to settle at 47117.00 per 10 grams on the multi-commodity exchange. Similarly, Silver futures decreased by 2605.00 Rupees or 3.64% to settle at Rs. 68863.00 per kg. The decline is attributed to the pressure from the stronger dollar and the unexpected lockdown. Also, the resurgence of the COVID-19 pandemic and the COVID-19 mutants kept precious metals’ prices on edge this year. In the international market, Spot Gold was trading at USD 1810 per ounce in New York. On the other hand, Silver traded at USD 26.89 per ounce.
USD/ INR- Sensex Today
The BSE Sensex fell and ended in the red on 17 June. Accordingly, Sensex decreased by 0.34% or 178.65 points. Thereby ending the session at 52323.33 at 4:10 PM IST Thursday. At the same time, the NIFTY decreased by 0.48% or 76.15 and ended up at 15691.40. The Indian rupee depreciation and the market crash is mainly attributed to the hawkish tone on the US Fed.