Rupee loses last session’s gains to settle low against robust US Dollar index. Rising concerns over COVID-19 cases investor sentiments lowered, making a negative impact and pushing Rupee to go low. It ends at 75.59 against the last close of 75.53 dippings by six paise.
At the interbank exchange market, Rupee traded at a low of 75.65 and a high of 75.51 before settling low provisionally. Forex traders were concerned over rapid rising Coronavirus cases and a constant outflow of foreign funds from the domestic equity market. US Dollar index with greenback’s strength gains 0.1% to 97.39 against Rupee.
USD/INR – Crude Price Soars with Positivity
Crude prices rise with expectations of demand recovery in the global market amid Coronavirus fast spread. Brent crude rises 0.8% to settle at USD 41.58 per barrel at around 0632 GMT recovering from last session’s drop of 1%. US WTI crude gains 0.9% to end at USD 39.62 per barrel nearing the USD 40 level and recovering from previous session’s losses.
American Petroleum Institute released a report late yesterday showing a sharp decline in US crude stocks bringing back hope for a swift recovery. Crude inventories dropped 8.2 million barrels to a total of 537 million barrels despite an earlier forecast of rising inventories. Investors and traders are keenly awaiting confirmation from US Energy Information Administration on API’s report. It will help the market increase despite the rising Coronavirus cases and fears.
USD/INR – Gold Prices Climbs with Losing Hopes
Gold prices jumped in today’s session marking a rapid increase in COVID-19 cases around the globe, making gold more precious. Spot gold rises 0.2% to settle at USD 1783.52 an ounce at around 0555 GMT nearing the highest level since 2012 of USD 1785.46. US Gold futures gained 0.1% reaching USD 1802.20 crossing the USD 1800 level with lowering economic recovery hopes.
Rising uncertainty in the market over the rapid increase in COVID-19 cases along with no vaccine. Investors are shifting to gold considered as safe-haven metal. They are viewing inflation to pick pace for financial institutions to support the economy and economic conditions. US Federal Reserve pledged surety to provide full support for uplifting the economy.
Domestic gold market rises 0.07% to close at INR 48794 per 10 grams surging INR 32. This rise supported by new COVID-19 cases emerging across the world, making the demand for the precious metal. This year gold prices rose more than 25% till date hoping for more gains in the next half.