commodity trading

Seeks Singapore Tie-Up for Growth of Capital City

The Indian rupee continued its decline against the US dollar, falling 18 paise to 96.38 amid rising crude oil prices and Middle East tensions. The currency has lost over 5% since late February, with concerns over geopolitical instability and foreign portfolio investor outflows pressuring its value.

The Indian rupee hit a record low of 96.70 against the US dollar on Tuesday, extending its losing streak to eight sessions. Rising crude oil prices, foreign fund outflows, and a strong dollar due to global risk aversion are key factors. Forex traders also cited supply-chain disruptions. The Reserve Bank of India's intervention and import restrictions might offer some support.

Gold and silver prices are expected to trade within a narrow band this week, with investors closely watching US-Iran peace talks and key global economic data. Analysts noted that while gold's momentum appears steady, silver shows positive movement. Geopolitical tensions and central bank buying are also influencing precious metal markets.

Gold price prediction today: Gold prices are seeing a weak intra-day bias, says Jateen Trivedi, VP Research Analyst - Commodity and Currency, LKP Securities. He recommends a sell on rise strategy:

Rupee hit a fresh record low of 96.07 against the US dollar on Friday, extending its losing streak over three straight sessions amid soaring crude oil prices and escalating tensions in West Asia. At the interbank foreign exchange market, the rupee opened at 95.86 against the US dollar and slipped further to 95.94, down 30 paise from its previous close.

Mitsui OSK Lines anticipates further container rate increases due to a gap between rising bunker oil costs and freight rates, particularly in Asia. While a prolonged conflict could impact demand, the company remains bullish on India's growth, expanding its fleet for energy and vehicle transport.

In an effort to curb demand, India's finance ministry has doubled the customs duty on gold and silver to 15%, significantly increasing domestic prices. This move follows Prime Minister Modi's appeal to reduce gold purchases, as India is the world's second-largest buyer of the precious metal.

Asian equities traded mixed as the AI and tech rally cooled, with Hong Kong's Hang Seng inching up while Shenzhen and Shanghai fell. Wall Street also saw a softer mood, with the S&P 500 retreating from a record high and chipmakers leading declines. Oil prices remained elevated due to ongoing disruptions in the Strait of Hormuz.

India faces a significant "live balance of payments stress test" due to the West Asian crisis, impacting inflation and currency, Chief Economic Advisor V Anantha Nageswaran stated. He emphasized that managing the current account and preventing currency depreciation are key macroeconomic goals for FY27.