USD/INR- The Indian Rupee value fell again at the beginning of the week and is trading at the edge of the 74 range. Accordingly, it settled at 74.88 on 19 April. The fall in rupee value is mainly attributed to the surge in COVID-19 cases and RBI’s unchanged repo rates. The Indian rupee traded between 74.540 and 75.055 today. On the other hand, the dollar index increased today. Accordingly, its value rose and settled at 91.09 as of 09:24 PM EDT Monday.
Why is the Rupee Value Plummeting in the Recent Past ?
In a matter of 3 weeks, the rupee has dropped down over 4.3%, making the Rupee one of the biggest loser. Alongside the Indian rupee, Turkish new Lira, Brazilian real, Russian Ruble, Thai Baht, and Indonesian Rupiah have lost value against the US Dollar. As mentioned earlier, the two main reasons for the fall in Rupee is the growing COVID-19 concern and RBI’s monetary policy. Also, the concerns over the pace at which the economy is recovering have affected the Rupee. Further, the positive growth pattern of the US Dollar has put pressure on the Indian currency. In addition to that, the RBI’s G-SAP programme for liquidation tumbles the currency. Another final factor is the foreign investor pull out that dwindles support and attributes to the fall.
USD/ INR: Oil Prices
The US WTI crude oil prices increased on Monday. However, with the ongoing oil demand concern and the growing coronavirus pandemic, it is highly uncertain. Also, recent studies predict that the oil demand will not reach the pre-crisis level until 2023. Accordingly, crude oil increased by 0.27% at 8:27 PM on 19 April to trade at USD 63.55 per barrel globally. At the same time, Brent Crude was set at USD 67.04 per barrel and traded at a rate of 0.01% lower today.
USD/ INR- Gold Prices
Precious metal prices rose amid the resurgence of COVID-19. Accordingly, gold futures increased by 0.11% or 52.00 Rupees to settle at 47405.00 per 10 grams on the multi-commodity exchange. On the contrary, Silver futures fell by 340.00 Rupees or 0.50% to settle at Rs. 68344.00 per kg. The resurgence of the COVID-19 pandemic and the COVID-19 mutants kept precious metals’ prices on edge this year. In the international market, Spot Gold was trading at USD 1787.20 per ounce in New York. On the other hand, Silver traded at USD 26.08 per ounce.
USD/ INR- Sensex Today
The BSE Sensex fell and ended in the red on April 19. Accordingly, Sensex decreased by 1.81% or 882.61 points. Thereby ending the session at 47949.42 at 4:10 PM IST Monday. Similarly, the NIFTY decreased by 1.77% or 258.40 and ended up at 14359.45.