USD/INR: Rupee Gains Against US Dollar

Rupee erased early losses to gain and settle high against US Dollar index. With the decisive run of the domestic equity market and inflow of foreign funds. Rupee rises to 75.56 provisionally gaining 13 paise as compared to the last close. At the interbank exchange, It trades between a high of 75.55 and a low of 75.75. It registers a profit amid rising US Dollar index.

Rupee trades in a narrow range and can expect downfall in coming sessions with strengthening US Dollar. Also, easing of crude prices supported Rupee gain momentum following strong bulls run. Investors are worried over rising Coronavirus cases, and rumours about another lockdown are weighing on investor sentiments.

USD/INR – Crude Price Rises with High Hopes

Brent crude oil rises 0.6% to settle at USD 40.55 recovering from USD 39.47 intraday losses. US WTI crude gains 0.6% to USD 38.23 climbing to reach USD 40 mark. Thursday tracked a volatile session with a slight improvement in the US economy with gains capped by COVID-19 fears. International Monetary Fund predicted a severe global recession, adding worries to already tensed crude market.

Crude oil gains ground in the last few sessions with positive news over declining unemployment rate and reopening of the economy. Central Banks around the globe provides a stimulus to curb the pandemic effect. But, economies suggest GDP to sink more in the 2nd quarter, making it difficult to revive. The rising no. of Coronavirus cases and 2nd wave of COVID-19 hitting different areas has created a fearsome scenario. Investors and traders are eagerly waiting if OPEC+ further deepens the production cuts beyond agreed July month.

USD/INR – Gold Prices face Downfall

Spot gold slips down by 0.2% to settle at USD 1758.70 an ounce after continuous surging in previous sessions. US Gold futures slump 0.4% to USD 1768.20 resisting gains. Tracking a volatile session, Gold prices edged lower—a shift of investors over riskier assets and supporting US Dollar amid a continuous spike in Coronavirus cases.

The gold market experienced a slight drop in demand with investors focusing on the equity market and favouring US Dollar index to reach high. A report showed unemployment prevailing in the US economy amid restarting of businesses and operations. Analysts advise fall in gold prices as a buying opportunity to benefit in future. Despite the drop, gold is seen well supported due to rising fears over rising Coronavirus cases and the great depression that could hit again.

Domestic gold market slips from record highs on Thursday tracking profit booking at high rates and stable US Dollar index. Gold futures drop 0.07% to INR 48100 per 10 grams.

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