Rupee, in today’s session, continues the rising rally followed by strong equity performance and continuous flow of foreign funds. With unstable US Dollar index, Rupee gains 37 paise to settle at 75.48 provisionally since the last close at around 75.85.
US Dollar index settles low, losing 0.13% to 96.91 giving room to Rupee and gold prices to surge and gain benefit. At the interbank exchange market, Rupee rallies between a low of 76.08 and high of 75.47 registering a powerful opening. The positive news of COVID-19 vaccine releasing next month helped to uplift the forex sentiments.
Crude Oil expects Smooth Recovery
Brent crude oil rises 1.1% to settle at USD 43.57 per barrel recovering from intraday low of USD 42.21. US WTI crude soars 1.2% at USD 41.21 crossing the USD 40 mark gaining from the level of USD 39.76. Today’s session marks volatility over the rising confusion about US-China trade deal.
White House advisor commented the US-China trade deal to be over puzzling the market sentiments. But, US President in today’s meet cleared the confusion giving assurance that the transaction is intact and operational. US-China relations have degraded a lot in the past due to the pandemic spread with accusations by US President and administration to Beijing for not openly telling about Coronavirus. Support to oil prices was provided by reopening of economies and resuming operations tracking oil price to reach high. Bank of America Global Research forecasted a favourable report. It expects Brent crude to reach an average high of USD 43.70 per barrel in 2020 uplifting from a last updated low of USD 37.
Gold Price Aims for new Highs
Gold prices marked steady gains in today’s session, maintaining the one month-peak scaled in the previous session. Spot gold rises 0.1% to USD 1756.40 an ounce after hitting the high of USD 1762.84 in the last session. While US gold futures gained 0.3% to USD 1771 nearing the USD 1800 level.
With the Coronavirus staying longer than expected in economies, the introduction of stimulus and support will continue for gold value to surge to new targets. Gold prices rise more than 16% this year with the backing from the global stimulus. Also, it is considered a hedge against inflation. Further, SPDR Gold Trust holdings soar 0.58% to 1166.04 tonnes as of yesterday marking the highest in 7 years. For helping gold to stay afloat, US Dollar index slumps low.
Domestic gold futures drop 0.01% to INR 47939 per 10 grams amid the rising Coronavirus cases. Spot gold in India dips by INR 85 totalling to INR 48811 per 10 grams amid appreciation of Rupee and upliftment in the equity market.