USD/INR: Rupee Loses Yet Again Against US Dollar

Rupee depreciates in today’s session tracking volatile domestic equity performance and rising US Dollar index. Surrendering initial gains, Rupee settles at 75.02 at around 11:20 UTC losing 21 paise in the value since the last close. At the interbank exchange market, it trades between a low of 75.05 and a high of 74.84 to provisionally settle low.

Strong US Dollar, uncertain domestic equity market changes and spiking Coronavirus cases dragged Rupee down. The inflow of foreign funds could not support the dropping Rupee. Nonetheless, the US Dollar index with greenback’s strength gains 0.05% to reach 96.89 against a pool of six currencies. COVID-19 cases in India have crossed 1.18 crores making to 3rd most affected country.

USD/INR – Crude Price Fell over Stockpiling

Crude prices traded negative on Wednesday’s session with doubts over economic recovery. Brent crude slips by 1% to settle at USD 43.07 per barrel at around 0832 GMT. US WTI crude fell 0.7% to USD 40.54 per barrel continuing the losing streak. Rising Coronavirus cases in the USA and stockpiling data are hindering the growth.

US COVID-19 spread has crossed a milestone of more than 3 million cases with a constant rise. Also, crude oil stocks soar as reported last week data showed by the American Petroleum Institute. US Energy Information Administration quoted the US crude output to fell by 600000 BPD in 2020. Crude stock data by EIA is due out late on Wednesday. OPEC+ is planning to held a meeting next week to further discuss the future of production cuts for supporting crude prices.

USD/INR – Gold Price Gains over uncertainty

Gold prices surge to reach highest since November 2011 with mounting fears about Coronavirus cases spread globally affecting economies. Spot gold rose 0.3% to settle at USD 1799.22 an ounce at around 0854 GMT after touching the highest of USD 1800.18 during the session. US Gold futures climb 0.2% to settle at USD 1812.90 an ounce.

Investors are shifting their focus from riskier assets to a safe-haven metal with uncertainty over economic recovery. European shares traded lower this morning with denting hopes of improvement any time soon. US Federal Reserve expressed great concern over spiking COVID-19 cases that will hurt consumer spending and jobs. Markets generally operate on optimism, and that is being tested with gold benefiting from hedging.

Domestic gold market drops by 0.19% to trade at INR 48705 per 10 grams with the optimism of economic recovery. Investors are booking profit and shifting to riskier stocks to operate on luck with rising hopes of swift recovery.

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