Indian Rupee strengthened against the US Dollar. Rupee closed at 75.55 registering a gain of 11 paise from yesterday. Sentiments of forex traders uplifted leading to a positive rally of Rupee. The rupee traded between a high of 75.47 and a low of 75.68. The rupee opened positive at 75.57, marking feeble US Dollar index and a good run of the equity market.
The renewed interest of foreign investors in the Indian equity market, including Reliance Industries rights issue, can be seen supporting Rupee. But, increasing cases of Coronavirus and trade war between the US and China can adversely affect rising Rupee.
US/INR: Crude Oil rises
Brent Crude oil increased by 1.47% to close at USD 35.15 a barrel. US WTI crude rose 1.47% to USD 32.18 per barrel. The API data showed a fall in inventories of US crude by 4.8 million barrels to a total 521.3 million barrels recorded in the 2nd week of May.
Low demand and profit margins could hinder Crude oil recovery. The lockdown relaxations in this pandemic and production cuts implemented by OPEC+ helped boost crude demand with control on the piling of inventory. But, the increasing cases of Coronavirus and capping of profit margins led to a stable rise in crude oil prices.
USD/INR: Gold Rises due to Brewing Tension
Spot gold rose up by 0.2% to USD 1747.82 an ounce. US gold futures were up by 0.4% to USD 1752.40.
Gold prices bounced back today as weak economic data gave rise to the demand for gold in the global market. Also, the false hope of Coronavirus vaccine created tension in the economy upping gold demand.
US market and Asian stocks fell flat today after trading positively this week. Also, Japan’s economy hit a decade low as businesses collapsed pulling the economy into recession. The trade relations between the US and China worsened as foreign companies begin shifting their plants away from China.