Rupee trades flat in Today’s session, making a slight drop tracking robust US Dollar. It settles at 75.53 provisionally marking a fall of 2 paise since the last of 75.51 making a flat rally. At the interbank exchange, Rupee rallied at a low of 75.58 and a high of 75.45 before making a flat display.
Forex traders reported Rupee to trade in a narrow range with decisive equity run. Also, concerns over the outflow of foreign funds and rising COVID-19 cases derailed investor sentiments. The US Dollar index with greenback’s strength gains 0.09% to close at 97.62, forcing the domestic currency to drop. Crude prices fell, making some room for Rupee to rise, hoping for a swift recovery in tomorrow’s session.
USD/INR – Crude Price Marks Drop
Brent crude drops 0.5% to USD 41.63 per barrel for September contract losing Monday’s gains. US WTI crude fell 0.7% to USD 39.43 per barrel distancing from USD 40 level. Oil prices slump with rising COVID-19 cases and the return of Libyan oil production.
A rise in oil prices as noticed last week is capped over growing concerns of a rapid increase of COVID-19 cases and no vaccine to cure it. Also, Return of Libyan Oil production back to normal would make it difficult for OPEC+ to hold crude prices above. Libya’s rise in oil export will pose a threat to stable crude oil, making the supply in excess to current demand. American Petroleum Institute reported signs of recovery of oil demand hoping to come back to normal.
USD/INR – Gold Prices Settles Flat
Spot gold remained flat with little change trading at USD 1770.34 an ounce. It’s only USD 8.72 distant from 8-year high recorded last week. The US Gold futures dip 0.2% to settle at USD 1784.10 an ounce keeping close to USD 1800 level. A sudden shift of investors from safe-haven demand to risk-taking stocks lowered gold prices amid a rapid spike in Coronavirus cases.
US Federal Reserve quoted the US economy’s recovery to be extraordinarily uncertain. The rise in Coronavirus cases and fears of 2nd wave of Coronavirus is making global economies unstable. Gold records most significant quarterly gains with more than 12% eyeing for continuous monthly benefits. Also, the advancement of gold is capped by the steady performance of the US Dollar index.
The domestic gold market traded high with rising Coronavirus numbers boosting its demand. Gold futures climbed 0.07% to settle at INR 48279 per 10 grams aiming higher to cross INR 50000 level.