Rupee appreciates today with optimism in the equity market and continuous inflow of foreign funds. It rises to 75.85 provisionally at around 14:10 UTC making a gain of 37 paise since the last close on Friday. Also, upliftment of other currencies against weak US Dollar supported the rising Rupee.
At the interbank exchange market, Rupee after opening secure makes a rally towards a high of 75.85 and a low of 76.33 before settling high registering gains. US Dollar index fell short by 0.31% to 97.31 against a basket of 6 currencies. A rise in crude prices could not hinder the strong rally of Rupee. Also, positive news of COVID-19 vaccine to be introduced by Glenmark at the beginning of July for treating minor to moderate symptoms helped in the upliftment of forex’s sentiments.
USD/INR – Crude Price Marks Continuous Gains
Crude oil prices rose steadily today with recovery in demand and support from production cuts. Brent crude oil rises 0.2% to USD 42.29 per barrel, while US WTI crude surges 0.1% to settle at USD 39.87 per barrel. Gains were stalled by rising COVID-19 cases fearing investors and traders.
Oil prices have gained support worldwide with recovery in demand as nations resume operations after Coronavirus lockdown. Both contracts surge above 9% in the last week with hopes of a quick recovery. However, prices have come to a halt with no support and rising concern over the 2nd wave of Coronavirus. Analysts suggest increasing in infections with prolonged effect to prevail in the markets.
USD/INR – Gold Prices Settles Flat
Spot gold surges 0.3% to settle at USD 1747.59 an ounce nearing the USD 1750 mark. US Gold futures rise 0.7% to USD 1764.50 targeting USD 1800 level. Steady growth in gold prices is scaling to one- month’s high after the news about increasing COVID-19 cases raising concerns over smooth global economic recovery.
WHO recorded a sudden rise in infections on Sunday with cases rising in North and South America. With concerns over longer recovering time, gold prices surge as the only hope against losses. SPDR Gold Trust holdings saw a rise of 2% to 1159.31 tonnes on Friday with speculations of constant growth. US Federal Reserve gave out a warning to curb the spreading virus, or else unemployment rate can rise again.
Domestic gold prices record a huge jump nearing the INR 50000 per 10 grams less with INR 251. With support from international gains and highest single-day spike, demand for safe-haven rises with fears of the economy slowing down.