In today’s session, INR settled lower after strengthening for consecutive days last week. USD strengthened overseas, which affected the stability of Indian Rupee.
INR settled at 75.92 against US Dollar falling by 38 paise after trading between 75.55 and 75.77 during intraday. On Friday, the Indian Rupee had closed at 75.54.
Forex traders were concerned about the increasing cases of Coronavirus in India. The compounded growth rate of new COVID-19 cases jumped to 7.00% in India. The rapid growth rate likely to have a negative impact on the economy. Coronavirus cases in India crossed 70,000 in India.
USD/INR – Crude Oil Price Drops
Crude oil prices dropped today on account of increasing Coronavirus cases and low demand during COVID-19 crisis. The second wave of the Coronavirus cases is being noticed in China. Increase in COVID-19 cases in China dashed hopes of crude traders who had expected to increase exports of oil to China. Global oil demand has fallen drastically by about 30%.
Brent Crude oil dropped by 3.6% to close at USD 29.86 per barrel. US WTI crude price was down by 3.7% at USD 23.82.
After a decent recovery of crude in the past two weeks, this week started with prices dropping. The lifting of lockdown restrictions in many countries may lead to the 2nd wave of Coronavirus cases that may further affect the global economy adversely.
USD/INR – Gold Prices to Rise in Future
Demand for Gold rose across the globe keeping prices above USD 1700 level. Spot gold rose by 0.2% to USD 1704.26 an ounce and US Gold futures increased by 0.4% to USD 1707.70.
However, Gold futures in India dropped by 0.06% to INR 45785 per 10 grams. Indian spot gold market is closed due to COVID-19. Gold demand in China increased due to discounted offers to pump up the economy. Still, the threat of 2nd wave of COVID-19 after public summer holidays in China created tension across the world economies.