USD/INR: Rupee Continues to Gain Against US Dollar

Rupee continues the winning streak to appreciate further since the last close and settle high against US Dollar on Friday. Tracking weak US Dollar index and decisive run of the equity market, investor sentiments were high uplifting its value. Rupee gains 14 paise to close the session at 75.66 with optimism over COVID-19 vaccine.

Forex traders thought to provide support to the rising Rupee with soaring equity performance. Also, encouraging results of Coronavirus vaccine by Zydus Cadila Healthcare on human trials supported the trade. At the interbank exchange market, Rupee trades between a low of 74.90 and a high of 74.65 before settling high and registering appreciation in its value. US Dollar index with greenback’s strength drops 0.11% to 97.20, providing enough room for Rupee to surge.

Crude Oil Drops over Tensions

Brent crude oil dips 1.3% to settle at USD 42.58 per barrel at around 1352 GMT in yesterday’s session. US WTI crude slumps 1.4% to end at USD 40.07 per barrel dropping to USD 40 mark. Crude oil drops high in Friday’s meeting with raising concerns over low fuel demand and stalling of economic growth.

Rising Coronavirus cases in the US can affect the increasing employment rate as of June. This week still marks gains in crude prices with possible signs of recovery. US economy being fragile will worst hit if infections continue to rise. OPEC+ production has dropped significantly supporting the low demand. A private survey company showed China’s recovery rate to be boosted at a faster pace as compared to in a decade.

Gold Price Trades Flat

US spot gold remained unchanged in Friday’s session to stay at USD 1774.33 an ounce at around 1433 GMT. US Gold futures dropped a little by 0.2% to settle at USD 1786.10 an ounce. Most US markets remained closed ahead of Independence Day marked on 4th July.

Gold prices will trade in a tight range but above USD 1750 with excellent support from concerns over COVID-19 spread. Also, Central Bank easing up policies for supporting the economy from fears over 2nd wave of Coronavirus helped in the upliftment of Gold prices. SPDR Gold Trust holdings rise 0.8% to 1191.47 tonnes as of Thursday. World equity market buoyed this week over positive news from recovering China economy and US Job reports.

Domestic gold market dips 0.13% to close at INR 48095 per 10 grams as investors book profit with better than expected performance of the market.

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