Rupee tracked volatility in the session touching the high of 75.60 and low of 75.97. It registered a rise of 14 paise closing at 75.63 against US Dollar compared to the previous close at 75.77. US Dollar index rising a little by 0.02% didn’t affect Rupee.
Forex traders are confused about the performance of Rupee amid the rising tension between the US and China. The Rupee opened weak in today’s session but parring losses traded at 75.76, raising the hopes of investors. Also, strengthening of the Indian equity market helped Rupee gain further grounds against the US Dollar.
Crude Oil Dips with Rising Inventories
Brent crude oil dropped by 1.12% to close at USD 34.35 a barrel recovering from lows of USD 33.62 during the session. US WTI closed at USD 32.31 per barrel after gaining from low of USD 31.14. Prices set to decline further as news of increased inventory surfaced.
The uncertainty of production cuts by OPEC+ weakened the market sentiments leading to a decline in oil prices. The ease of lockdown restrictions and reopening of economies across the globe set the hopes high for effortless recovery in demand and prices. However, piling up of crude inventories dampened the hopes and led to a fall in price.
Gold Price Closes with Gains
Spot gold rose by 0.6% to USD 1718.67 an ounce after dropping USD 1693.22 in the last session. US Gold futures were up by 0.4% to USD 1717.70 after falling 0.2% in the previous session. SPDR gold trust holdings hiked by 0.2% to 1119.05 tonnes.
Gold prices increased today with the rise in US-China tensions over Hong Kong security laws. In addition, measures taken by economies to fight Coronavirus supported the gold price. Gold prices gained momentum after trading low in last couple sessions. The world economy is already under pressure due to the spread of COVID-19. Further, degrading relations between the 2 largest economies can worsen the conditions forcing investors to seek refuge under safe-haven.