Domestic Currency (Rupee) likely to commence on weaker note as dollar bounced sharply from session lows on Wednesday on renewed safe-haven demand on fears that the progress over reopening the economy could be rolled back as corona virus cases continue to mount.
On Wednesday USDINR show some weakness after two day winning rally, Intraday trading range was 75.58 - 75.77 before finished at 75.7250 levels.
India reported 16,000 new corona virus cases on Wednesday, its highest daily increase since the outbreak began, and the government called in the army to manage new treatment centers with thousands of additional hospital beds in New Delhi.
INTRADAY RANGE - 75.43 ( 75.57 - 75.83 ) 76.01
GLOBAL HIGHLIGHTS
U.S. stocks were lower on Wednesday, as losses in the Oil & Gas, Industrials and Financials sectors led shares lower. At the close in NYSE, the Dow Jones Industrial Average fell 2.72%, while the S&P 500 index declined 2.59%, and the NASDAQ Composite index declined 2.19%.
The International Monetary Fund warned on expects a 4.9% contraction this year instead of its previously forecast 3% drop, underscoring the scale of the task facing policymakers.
GBP/USD is currently trading at 1.2410. The pair needs to establish a strong foothold above 1.2543 to invalidate the negative view put forward by Wednesday's bearish outside day candle.
U.S. gold futures for August delivery settled down $6.90, or 0.4%, at $1,775.10 per ounce on New York’s Comex. On Tuesday, the benchmark gold futures contract spiked to $1,785.85, the highest reached on Comex since April 14.
Asian equities dwindle further as Trump administration alleges Chinese companies. Trade wars, fears of virus resurgence recently hit the market sentiment.
Off in China, Hong Kong fails to confine the trades’ risk-off mood amid a light calendar.
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