Rupee gains 11 paise at 74.24 against USD, gold declines Rs 152

Mumbai, Aug 18 (PTI):
The rupee appreciated by 11 paise to close at 74.24 (provisional) against the US dollar on Wednesday, tracking weaker American currency against key rivals overseas.
However, intense selling pressure in the domestic equities and surging crude prices kept the rupee rise in check, forex dealers said. At the interbank foreign exchange market, the domestic currency opened strong at 74.30 per dollar. It hovered in a range of 74.24 to 74.31 during the session.
The domestic unit finally settled at 74.24 against the greenback, a gain of 11 paise over its last close. On Tuesday, the rupee had settled at 74.35 against the greenback. Meanwhile, the dollar index, which gauges the greenback’s strength against a basket of six currencies, slipped 0.10 per cent to 93.05. Gold in the national capital on Wednesday declined Rs 152 to Rs 46,328 per 10 gram amid muted global trends and rupee appreciation, according to HDFC Securities.
In the previous trade, the precious metal had closed at Rs 46,480 per 10 gram. Silver also dipped Rs 286 to Rs 62,131 per kilogram from Rs 62,417 per kilogram in the previous trade. The rupee appreciated 6 paise to 74.29 against the US dollar in early trade on Wednesday.
In the international market, gold was trading marginally higher at USD 1,787 per ounce and silver was flat at USD 23.74 per ounce. “Gold prices fluctuated in an upper trading range on mixed global cues,” according to HDFC Securities, Senior Analyst (Commodities), Tapan Patel.
Navneet Damani, VP Commodities Research, Motilal Oswal Financial Services said, “Gold traded steady hovering over the one week high, as the precious metal was caught between mixed US economic data, a firmer dollar and safe-haven demand driven by the Delta coronavirus variant fears.”
Gold prices on Wednesday surged Rs 14 to Rs 47,294 per 10 grams in the futures trade, as speculators created fresh positions on a firm spot demand.
On the Multi Commodity Exchange, gold contracts for the October delivery traded higher by Rs 14, or 0.03 per cent, at Rs 47,294 per 10 gram in a business turnover of 12,217 lots.
Fresh positions built up by participants led to the rise in gold prices, analysts said.
Gold prices traded 0.07 per cent higher at USD 1,789 per ounce in New York. Silver prices rose Rs 106 to Rs 63,332 per kg in the futures trade on Wednesday, as participants widened their bets on a firm spot demand.
On the Multi Commodity Exchange, silver contracts for the September delivery gained Rs 106, or 0.17 per cent, to Rs 63,332 per kg in 9,679 lots.
Analysts said the rise in silver prices was mostly due to fresh positions built by participants on a positive domestic trend.

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