USD/INR: The rupee further weakens

The rupee value further weakened because of the increase in demand for the US dollar. Investors are searching for predictable markets because global markets are now unpredictable. So, they go for safe bets like gold and the Dollar. The rupee closed at 75.193 INR yesterday. Today, the rupee dropped in value to 75.1500 at 13:59 IST. It ranged between the highest of 75.23 and the lowest at 75.08.

Gold Prices go up Because of Volatile Market

According to Rahul Gupta, Head of Research – currency at Emkay Global Financial Services, traders are seeking shelter in gold as it is a haven asset.  This is why gold prices are increasing despite no retail demand. Gold prices climbed to about Rs. 45,177.00 per 10 gram according to Indian Bullion and Jewellers Association. At a global level, gold traded at USD 1800.80 per ounce in New York. The Co-founder and COO of Groww Mr Harsh Jain, also noted that people are parking their money in gold because of the volatile market situation.

Instability in Oil Prices Because of Rising Tensions

The Joint Ministerial Monitoring Committee (JMMC), OPEC is planning to meet in the next two days to discuss future supply cuts. Tensions between the US and China are also putting pressure on oil prices. The Brent crude decreased to USD 42.59 a barrel by 08:48 GMT. In other terms, this is a decrease of 1.5% or 65 cents. Similarly, US crude was down by 1.9% at USD 39.80.

There was a jump of 15,300 new coronavirus cases in Florida, the US alone.  Further, there was 66,000 total of new cases in the US. In turn, a sharp increase has led to fear among investors. The oil prices will stabilize after the pandemic is controlled.

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