USD/INR: Rupee Opens High Against US Dollar

Rupee registered a decisive run against the US Dollar appreciating by nine paise to touch 75.49 at around 12:20 UTC after closing at 75.58 previously. During the day, Rupee traded between a high of 75.30 and low of 75.59 against US Dollar.

US Dollar index dropped 0.5% during the session. US Dollar index fell due to riots in major US cities and rising tension between the US and China. A war-like situation created over the Hong Kong issue, which can affect other economies. Rupee appreciated with positive cues from Asian markets and the decision of Government to reopen the economy in a phased manner starting from 8 June to bring domestic GDP back on track.

Crude Price Ends Flat

Oil prices mark steady growth with OPEC+ inching towards a compromise for increasing production cuts to stabilise the price. Brent Crude oil rose by 0.3% to USD 37.94 per barrel. US WTI crude dropped 0.3% to USD 35.39 per barrel.

OPEC+ agrees to prepone the meeting on June 4 for discussing further the strategy to tackle low demand. With the rising tension between the US and China portraying negativity with optimism prevails in the world economy. The market can experience volatility as global economies struggle to reopen in Coronavirus pandemic.

Gold Price Rises Amid Increasing Tensions

Gold prices rise as protests in the US creates a negative image deteriorating the economy. Spot Gold rose 0.8% to USD 1739.59 an ounce after dropping from a high of 1%. US Gold futures increases by 0.1% to USD 1752.50. SPDR Gold Trust holdings rise by 0.3% to 1123.14 tonnes marking a new high.

Weak US Dollar index and riots break out in US cities have forced investors to seek refuge under safe-haven. Tracking a fragile economy and urge to come out from lockdown restrictions, the protests display a negative sign with the spread of COVID-19. US Dollar index dropped 0.5% with the never-ending blame game between the US and China over Hong Kong’s security laws dispute.

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