Rupee continues the losing streak today with no momentum tracking weak domestic equity market and strengthening of US Dollar index overseas. It registers a drop of 10 paise to settle at 75.48 against US Dollar provisionally. During the session, Rupee traded between a low of 75.59 and high of 75.34 before settling low.
Forex investors got support from the reopening of the domestic economy with the increased inflow of foreign funds. But, brewing tension between US and China and political tensions in the USA forced Rupee to slump. US Dollar index surged by 0.34% to USD 97.60 against a pool of six currencies. Rupee will continue to lose grounds until further extended support by Government.
Crude Oil Tracks Losses Over Inventory Doubts
Crude oil price dipped today on the doubts about the extension of production cuts by OPEC+ with the worry over rising US crude oil inventory. Brent crude oil dropped by USD 0.29 to USD 39.50 per barrel. US WTI crude eased by USD 0.53 to USD 36.76 a barrel tracking a fall after six positive sessions.
OPEC+ failed to conduct a meeting to discuss the action plan tackling low global demand. Saudi Arabia, UAE and Kuwait declared no intention for additional production cuts by 1.18 million BPD after June as they ponder on the optimism for recovery in demand. The coming few sessions will mark volatility in the crude market with fluctuating prices. Some countries in OPEC+ broke down midway in the extension of production cuts as discussed in the last meeting.
Gold Price Surges with Brewing Tension
Gold prices climbed in today’s session tracking riots in US economy and drop in crude prices. While Spot Gold gained 0.4% increasing to USD 1703.67 an ounce after falling in the last session. US Gold futures, on the other hand, traded flat to close at USD 1704.90 per ounce. SPDR gold trust holdings saw a surge by 0.4% to 1133.37 tonnes as of yesterday.
Indian financial market tracked continuous gains with the optimism over reopening of the domestic economy in phases. Gold prices surged as compared to last session marking weak US Dollar index and rising political tensions between the US and China. Introduction of stimulus by the European Central Bank will benefit gold to be used as a hedge against inflation.