INR soared against US Dollar by 57 paise on Thursday. After opening at 75.17 today, it rallied between 74.94 and 75.20 intraday before settling at 75.09. Today marked Indian Rupee’s appreciation for the fourth consecutive day.
Forex investors gained hope after a successful trial of COVID-19 battling drug. The positive sentiment of Indian investors to strengthen INR further as several businesses begin operations from the 4th of May. Several other countries are easing lockdown and resuming operations which will help economies get back on track.
Analysts suggest another wave of Coronavirus spread to hit India, thus making the trade move towards 75.50-76.00. Dollar Index, with greenback’s strength traded 0.06% down at 99.50.
Gold Considered Safe-haven
The demand for gold increased by 1% in the last quarter of FY 2019-20 compared to FY 2018-19. COVID-19 outbreak and tension across the world brought about panic, and people shifted to buying gold as safe-haven.
As the US Fed marked the policy rates to zero and Chinese exports slumped with the long road to recovery, Gold and Silver prices rose. Gold futures increased by 0.43% to INR 45744 per 10 grams, while silver futures surged by 0.49% to total to INR 42571 per kg. Also, US gold futures soared by 0.7% to USD 1725 per ounce. Spot gold fell by 0.1% to USD 1708.85 per ounce.
Gold saw a low increase in prices as positive results of COVID-19 drug came thus lifting the stock market.
Crude Oil Ends High
Oil prices to fall further this year even after countries relax lockdown and resume operations. Analysts fear crude price to dip again due to negative sentiment. Buyers are less as storage sites have less to no space. Hopes of recovery kicked in when crude stock saw a decrease. WTI inventory rose by 9 million barrels against an expected rise of 10.6 million barrels.
Brent Crude oil surged 7.72% in today’s market to USD 26.10 per barrel, while WTI crude oil gained 15.01% today, closing at USD 17.32 per barrel.
Former RBI Governor’s Interaction with Rahul Gandhi
Former RBI governor, Raghuram Rajan while interacting with Congress leader, Rahul Gandhi through a video conference, gave his thoughts on Indian economy and Lockdown.
- He suggested opening the lockdown in a ‘measured way’ for saving jobs and dropping GDP of the economy.
- INR 65000 crores must be spent to support the poor in this crisis.
- Every Indian can’t support their staff and family for too long without any income source.
- India being a developing country, need to look out for measures for opening up the economy as forever lockdown is not at all sustainable.