INR soared against US Dollar today marking weak US currency and strong Indian equity market. From yesterday’s close, Rupee rallied between 76.14 to 76.44 finally settled at 76.18 with an effective rise of 7 paise during the session. Today marked 2nd consecutive day for INR gaining 28 paise.
The Dollar index gauged by greenback’s strength and traded at 99.84, dropping by 0.20% today.
Challenges for Crude Oil Continues
Around the globe, Oil prices dropped for the 2nd consecutive day. Concern over storage capacity and low demand feared among the producers and traders. Brent Crude Oil fell by 83 cents to USD 19.15 per barrel and WTI crude dropped by USD 2.57 to USD 10.21 per barrel.
Gulf Oil Lubricants India Ltd., a Hinduja Group firm started its operations after permission from the Government at Silvassa, Union Territory of Dadra and Nagar Haveli.
Experts opinion suggest an easing of lockdown restrictions and businesses to resume operations may increase demand. Other than that low demand and storage problems around the globe would pose problems as production cuts won’t be enough. A production cut of no less than 10 MN BPD agreed to be done by OPEC+ oil producers next month.
GDP Growth Forecast
CRISIL, an India based rating agency forecasted India’s GDP growth to 1.8% for the FY 2020-21. Also, estimating an economic loss of INR 10 Lakh crores due to Coronavirus outbreak and Lockdown restrictions.
India Ratings and Research, another rating agency forecasted the growth of Indian economy to 1.9% for 2020-2021 estimating the lowest in 29 years.
They also predicted for Rupee to appreciate to INR 73 against US Dollar,, Inflation to drop to 4.4% and current account deficit to reduce to 0.2% from 1% in the fiscal year 2020-21.
Gold and Silver to Mark Drop in Prices
Gold prices today dropped by INR 338 to settle at 45853 per 10 grams in futures as Investors lowered their investments with Global economy weakening. In the International market, Gold plummeted 0.53% to USD 1714.60 per ounce. The attempts by different countries to resume operations amid strict lockdown let gold prices falling by around 1% today.
Silver futures were also down by INR 548 to 41409 per kg. In Global Market, silver traded low by 1.34% to settle at USD 15.14 per ounce.