The Rupee is trading in a slender range, dropping further without the support and rising US Dollar index. Depreciating further in today’s session, Rupee fell more now to 76.36 provisionally against the last close at 76.19. Tracking continuous losing streak, Rupee settles 27 paise lower due to rising border tensions and outflow of foreign funds.
At the interbank exchange, Rupee being volatile traded between a high of 76.09 and a low of 76.37 before settling low. Decisive run of domestic equity market couldn’t help Rupee gain momentum against strengthening US Dollar index. With greenback’s strength, the US Dollar index closes at 97.20 surging 0.10%.
Crude Oil Stabilizes
Crude oil prices traded positive in today’s session tracking stability and covering up of losses by significant benchmarks. Brent crude oil surges USD 0.02 to a total of USD 40.73 per barrel, and US WTI crude drops USD 0.14 to USD 37.82 per barrel after recovering downfall of 2% earlier in the session.
The crude market continues to recover with optimism over uncertainties prevailing in the market. US Government data displayed a rise in oil inventories despite the increase in demand for gasoline and distillates. Concerns rose after the outbreak of 2nd wave of Coronavirus in Beijing and US states leading to the cancellation of flights and closing down of areas. OPEC+ is planning a meet later today for discussing the further plan on production cuts. They complied 87% to their commitments over output cuts supporting crude prices.
Gold Price Recovers to Settle High
Gold prices boosted with fears of 2nd wave of Coronavirus hitting various economies, leading to lowering investor sentiments. Spot gold rose 0.3% to USD 1731.88 an ounce running 1-week high earlier in the day. US Gold futures surge 0.5% to settle at USD 1744.80 per ounce nearing the USD 1750 level. Analysts expect a trading range over USD 1750 shortly.
Gold acts as safe-haven with fears of global economic recovery prevailing in the market. Investors stuck in a dilemma between risks of 2nd wave of Coronavirus and positivity about Government measures for economic recovery. They are eagerly waiting for the Bank of England meeting expecting the introduction of relief measures.
In the Domestic market, gold futures dip 0.08% to INR 47300 per 10 grams witnessing profit booking early in the day. Spot gold prices rise INR 18 to INR 48220 per 10 grams with soaring COVID-19 cases and deaths toll mounting.