USD/INR: Rupee Rallies low Against US Dollar

Rupee loses initial gains to settle a little low against US Dollar tracking weak greenback and decisive domestic equity run. After closing at 75.02 in yesterday’s session. Rupee slips a slight low of 3 paise to settle at 75.05 at around 14:50 UTC. At the interbank exchange market, it rallies between a low of 75.06 and a high of 74.94 before settling low and registering a loss provisionally.

Forex traders were delighted with excellent performance of financial market supported by the frail US Dollar index. However, the outflow of foreign funds and the rapid increase in Coronavirus cases weighed on investor sentiments forcing to drop low. US Dollar index with greenback’s strength dips 0.02% to 96.40 against a basket of six currencies including Rupee.

USD/INR – Crude Price Surges over Dropping Stockpiles

Recovery signs in demand of US Gasoline uplifted the crude market amid the rising fears of Coronavirus cases. Brent crude oil rose 0.12% to settle at USD 43.34 at around 1139 GMT. It gained more than 5% in the early session. At the same time, US WTI crude slips 0.3% to settle at USD 40.76. It further gained 0.7% earlier in the day.

The market is cautious over OPEC+ panel meeting scheduled for 15th July to discuss the future of crude. US EIA reported a drop in gasoline stocks by 4.8 million barrels as of last week with surging demand since March. Fears of lockdown restrictions with spiking COVID-19 cases dented the recovery keeping a tight check on crude prices.

USD/INR – Gold Prices Rise with increasing Fears

Gold prices stayed above USD 1800 level just an inch away from the 9-year peak with rising Coronavirus spread and stopping the recovery of the global economy. Spot gold climbs 0.2% to settle at USD 1814.53 an ounce at around 0921 GMT after reaching the highest on Wednesday. US Gold futures rise by 0.2% to USD 1823.60 per ounce.

Federal Reserve suggests US recovery be stalling, lowering the investor hopes and forcing them to shift to safe-haven. The gold market can expect some volatility in the coming future with economies returning to normalcy that could slow down the gold rally. Britain’s Finance Minister assured to provide USD 38 billion to deploy the worries of the unemployment crisis. Gold shall remain in power with dropping US Dollar and rising COVID-19 cases rapidly despite growing equity markets around the globe.

Domestic gold market drops by 0.04% to close the rally at INR 49138 per 10 grams. High hopes of economic recovery despite spiking Coronavirus cases lowered the market rally.

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