Rupee regains strength against the US Dollar to recover from 76.00 level. Fears continue marking weak domestic equity market and outflow of foreign funds. US Dollar index with greenback’s strength falls to 0.13% to 97.19 against a pool of 6 currencies which gave some room to Rupee.
After settling at 76.10 in the last session, it traded between a low of 76.14 and a low of 75.98 before settling high. At around 15:15 UTC, Rupee traded at 75.98 gaining some previous losses. Forex investors remain fragile with sentiments unstable amid the rising Coronavirus cases around the world.
Crude Oil Continues Falling
Brent Crude oil drops by 3.4% to USD 37.41 per barrel while, US WTI crude fell by 4.8% to USD 34.51 per barrel. Crude prices slumps extending previous week’s losses with worries about new Coronavirus cases coming up.
Oil benchmarks fells to almost 8% last week with Coronavirus cases gaining pace again in the US and Japan. Recovery of China was sloppy as crude oil import rises for 2nd consecutive month with small growth. OPEC+ will hold a meet on Thursday to discuss further the production cuts and to see the output reports by the countries. They have till now extended the cuts to 9.7 million barrels per day. Iraq’s oil minister expects an average of 2.8 million BPD export in June.
Gold Price Drops with Uncertainty
Spot Gold drops by 0.7% to USD 1718.13 an ounce while US Gold futures were down by 0.8% at USD 1722.70 per ounce. The gold market fell today after last week’s high limited by 2nd wave of Coronavirus cases. Analysts are eagerly waiting for the confirmation of 2nd wave of COVID-19 and if economies will start to shut down, which will support gold aiming high.
With no support to gold, it’s stuck between a tight range of USD 1700 with investors making assumptions of what to happen in the economy. Gold prices surge last week by 2.6% as worries of new COVID-19 cases subdues the hopes of economic recovery. Gold slumps with the strengthening of the US Dollar. SPDR gold trust holdings rise 0.1% to 1136.22 tonnes as of Friday.
With the positive recovery of the equity market and depreciation of Rupee, domestic spot gold gains INR 153 to INR 48144 per 10 grams. Gold futures slip 0.36% to INR 47164 per 10 grams.