USD/INR: Rupee Surges the Most Against US Dollar

Rupee advances the highest since 23 April in a single day. With the weakening of the US Dollar index and the decisive run of the domestic financial market. It gains around 81 paise ending at 74.78 provisionally since the last close at 75.59. Also, positive tests of COVID-19 vaccine uplifted the market sentiments.

At the interbank exchange market, Rupee rallies between a high of 74.66 and a low of 75.53 posing a strong rally and closing with gains. US Dollar index with greenback’s strength slumps 0.35% to 96.85. Against a pool of 6 currencies making enough room of Rupee to rise.

USD/INR – Crude Price Tracks Gains

Crude prices track a continuous winning streak with positive news of dropping crude stocks amid the spiking Coronavirus cases and reviving lockdown measures. Brent oil gains 0.5% to settle at USD 42.24 per barrel with rising over 1.8% in the last session while US WTI crude climbs 0.5% to USD 40.02 per barrel continuing the rising streak of 1.4% as of yesterday.

A sudden drop in crude stockpiling by 7.2 million barrels unexpected by analysts helped the market rising high. But, capping the gains is the worry about climbing COVID-19 cases spiking the most elevated in the last few days. US Energy Information Administration reported a drop of crude inventories as a new development in demand. US investors and traders are waiting for the July 4 holiday weekend after which how quick the oil producers will respond to reviving the crude market.

USD/INR – Gold Prices Rise over uncertainty

Gold gains momentum with easing up of US Dollar rally. It settles higher on Thursday recovering from drops over economic recovery. Spot gold climbs 0.3% to settle at USD 1775.66 an ounce at around 1504 GMT. Spot gold is nearing the 8-year high of USD 1788.96 this week. US Gold futures gained 0.4% touching USD 1787.50 an ounce nearing the USD 1800 level.

The dropping of US Dollar indicates doubts of economic recovery and investors making a shift towards safe-haven metal. Analysts suggest US Federal Reserve will provide more stimulus for uplifting the economy. The latter published the minutes meeting stating the interest rates to be low till 2022 providing hedging advantage to gold. Employment climbs 4.8 million jobs this June recording the highest since the starting of records in 1939.

Domestic gold market drops by 0.14% to close at INR 48199 per 10 grams with optimism over potential COVID-19 vaccine to be released in the market.

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