USD/INR: Rupee Depreciates Against US Dollar

Rupee continues the losing streak to fell further in the 76.00 level with strengthening US Dollar index. Rupee drops to 76.19 provisionally at around 12:20 UTC depreciating seven paise against the last close. Rising border issue between India and China and outflow of foreign funds degraded investors’ sentiments.

At the interbank exchange, Rupee traded between a low of 76.46 and a high of 76.12 before settling low. Rising crude prices forced Rupee to trade low. US Dollar index with greenback’s strength increases by 0.05% to 97.54. The immediate support to Rupee comes to 75.75 and resistance at 76.50. Market sentiments remain fragile, tracking geopolitical disputes and fears among investors.

USD/INR – Crude Price Marks Continuous Gains

Brent Crude oil rises 0.7% to USD 41.25 per barrel tracking continuous gains. US WTI crude surges 0.4% to USD 38.55 per barrel nearing the USD 40 mark. Meanwhile, crude oil price gains today with hopes over recovering economy and successful report on COVID-19 vaccine. The gains curbed by news of 2nd wave of Coronavirus cases.

The last session marked a rise of more than 3% in leading benchmarks after the surge in demand forecast by IEA. However, concerns fueled the pressure on crude prices after Coronavirus cases cross 8 million marks globally and news of 2nd wave of Coronavirus. OPEC+ will conduct a meet tomorrow discussing the further plan on supporting crude prices with output cuts. WHO is reviewing to update its guidelines after a favourable report of COVID-19 vaccine to treat severely ill patients.

USD/INR – Gold Prices Settles Flat

Spot gold prices lay flat today at 1727.26 an ounce after surging in the last session. US Gold futures also remained unchanged at USD 1736.60 after a steady rise in the previous session. Advancement of gold was restricted by a positive report on COVID-19 vaccine and strengthening US Dollar.

Beijing reported new Coronavirus cases and announced the extension of lockdown. But, investors focus on the equity market and hoping for soon recovery to earn benefits. Rising US Dollar index made it difficult to buy gold. Global political tensions and inducement of stimulus from Central banks offer support to the safe-haven. We can expect a rise in gold prices with rising Coronavirus cases and the 2nd wave of COVID-19 hitting the streets in different countries.

Domestic gold futures dropped 0.46% to INR 47350 per 10 grams amid the rising border tension between India and China. Spot gold surges INR 761 to INR 47350 per 10 grams with the rising US Dollar and depreciation of Rupee.

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