Rupee failing to keep up the high grounds slips further low tracking a weak domestic equity start and strong US Dollar. After opening weak in today’s session, Rupee also drops to 75.22 at around 13:20 UTC losing 20 paise since the last close. At the interbank exchange, it trades between a low of 75.30 and a high of 75.10 stoopings to lower levels.
Renewed lockdown measures in the United States have derailed the high hopes of economic recovery, forcing investors to seek shelter under safe-haven metal. Declining crude prices could not help Rupee rise with the strengthening of the US Dollar and robust performance of the equity market. US Dollar index with greenback’s strength soars 0.09% to reach 96.79 against a pool of six currencies including Rupee.
USD/INR – Crude Price Registers Loss with Rising Tension
Crude prices drop on the last trading session of the week paring previous gains. Because of renewed lockdown measures to battle against spiking Coronavirus cases in the global economy. Brent crude dips 0.2% to settle at USD 42.28 per barrel at around 0114 GMT. It continues the early losses of more than 2%. At the same time, US West Texas Intermediate slumps 0.3% to settle at USD 39.49 per barrel. Losing the USD 40 mark and slipping more than 3% in the early trade.
Despite the expectations of economic recovery and fuel demand rising after the pandemic, record surge in COVID-19 infections are raising concerns otherwise. Oil inventories are also increasing with subduing demand for gasoline, diesel and other fuels. US crude inventories projected a steep rise of more than 6 million barrels as of last week against the expectation of a decline in the stock. This week, Brent crude heads for 1% drop, while US crude tracks a drop of nearly 3%.
USD/INR – Gold Prices Uplifts with Brewing Tension
Gold prices continue weekly gains with Coronavirus cases showing no signs of decline keeping the demand of safe-haven metal high. Spot gold traded unchanged at USD 1801.69 at around 0041 GMT, spiking more than 1.5% this week. Meanwhile, US Gold futures climb 0.2% to reach USD 1806.90 an ounce continuing the value upliftment. Local data showed zero sales in stores where cases are rising rapidly, dampening the recovery hopes any time soon.
Asian markets opened low with concerns of fresh lockdowns in the USA, lowering the global hope of recovery. The US recorded a high of 60000+ cases in a single day by any country, creating tension and fears among investors. Bank of Japan to cut the economic view for all the nations. This act is done for the 2nd time since 2008 losing hopes. SPDR Gold Trust holdings project a drop by 0.15% to 1200.82 tonnes as of yesterday.
Domestic gold market slips 0.01% to close the market at INR 48875 per 10 grams with rising hopes of swift recovery and surging equity market.