Rupee stood at 75.77 against USD at around 14:00 UTC. It dipped 33 paise against the US Dollar from last session’s high close at 75.44. Forex market witnessed high volatility with Rupee trading between a high of 75.49 and low of 75.78.
The strengthening of the US Dollar index overseas rising at 0.17% to 99.08 forced Rupee to fall. Rising tension between the US and China can further deteriorate Rupee conditions. Some optimism of Indian economy restarting after lockdown 4.0 may help rupee strengthen. Also, bulls in the Indian equity market may further hep Rupee not fall below 76 against USD.
Crude Price Breaks the Gain Chain
Brent Crude oil dropped by 1.5% to USD 35.64. Further, US WTI crude dipped 1.5% to USD 33.85. A potential degradation in US-China relations led oil prices to fall.
A fall in crude inventories and demand recovery across many countries held the sentiments high for oil prices. But, increasing tension between the US and China, the two largest economies deteriorated high hopes. Pressure on global businesses increased due to rising COVID-19 cases, weak demand for oil and new brewing tension which led to a fall in crude prices. With stability in the market, OPEC+ will further meet to discuss new strategies.
Gold Price Ends Flat
Spot gold remained the same and closed at USD 1711.93 an ounce after registering a drop of 1% in the last session. US Gold futures closed at USD 1705. India gold futures dropped 0.12% to INR 46264 per 10 grams.
Today’s gold market closed flat after a positive counter between the US and China tension and restarting of the global economy. The concerns about weak GDP growth and rising cases of Coronavirus were fell short with the worldwide reopening of the economies with certain measures and precautions. But, the worsening of relations between the US and China will help gold surge in the coming days.