Indian Rupee surrenders early gains to settle low against robust US Dollar. With rising cases of COVID-19 domestically, Rupee projected weak performance. It ends at 75.63 provisionally at around 18:10 UTC losing seven paise since the last close covering losses. It trades between a low 75.68 and a high of 75.4. Finally, registering a decline in value at the interbank exchange market.
Global equity market trades high with investors’ focus shifting to risky stocks and US Dollar index for uplifting the economy. Introduction of stimulus packages provides support in the upliftment. But, uncertainty prevails over rising COVID-19 cases with no vaccine to fight against it. US Dollar index with greenback’s strength increases by 0.05% to 97.37.
USD/INR – Crude Price Drops Again
Crude prices dropped on Friday losing early gains with concerns over crude oil stockpiling up. Brent crude oil slipped 0.3% to USD 40.92 and US WTI crude fell 0.6% to settle at USD 38.39 distancing from USD 40 mark. This week, both contracts dropped more than 3.1% and 3.6% respectively considering the rising stocks of US crude inventory.
Volatility remains in the market with Coronavirus pandemic continuing the never-ending run and cases spiking. It has hindered the demand recovery capping the gains. Some optimism in early trade with recovering economy and road traffic booming were washed off later in the deal. An overall global economic outlook has dropped to a major low as reported by analysts, and a more significant recession is on its way.
USD/INR – Gold Prices Drops with Shift in Focus
Gold prices continue the losing streak with US Dollar strengthening and focus being shifted. Spot gold dips 0.5% to USD 1752.91 an ounce dropping from record highs reached this week while US Gold futures slump 0.4% to settle at USD 1762.90 with decreasing safe-haven demand in the market.
Full credit for the drop in gold prices weighs on steady US Dollar index with its appeal surging in the market. However, with continued support to gold from monetary policies, it can break USD 1800 level. Also, rising Coronavirus cases with no vaccines in the market and concerns over inflation will see a shift of investors to safe-haven soon. If Central Banks keeps printing money with relaxations in monetary policies, gold prices will see a decisive rally reaching high targets.
Domestic spot gold market registers a rise by INR 239 to settle at INR 49058 per 10 grams amid the drop internationally.