Globally, Oil prices fell on Wednesday as COVID-19 curbs in top crude importer China and expectations of further interest rate hikes fanned concerns of a global economic recession and lower fuel demand growth. Crude inventories in the U.S. Strategic Petroleum Reserve (SPR) fell 7.5 million barrels in the week to Sept. 2 to 442.5 million barrels, their lowest since November 1984, according to data from the Department of Energy. But, both WTI & Brent fell by more than 1.4% & 1.3% respectively. The dollar marched higher on Tuesday after a report on the U.S. services industry in August reinforced the view that the United States was not in recession, while the euro and rate-sensitive Japanese yen tumbled further against the greenback. A survey from the Institute for Supply Management (ISM) showed the U.S. services industry picked up in August for the second straight month amid stronger order growth and employment, while supply bottlenecks and price pressures eased. Emerging market currencies will find it difficult to reclaim ground lost this year as relentless Federal Reserve rate hikes and safe-haven demand keep the dollar ascendant, a Reuters poll of currency strategists found. Asian shares fell on Wednesday morning after investors remained worried about the health of China's economy. It is a concern for Beijing - and increasingly the world. Wall Street's main indexes closed lower on Tuesday. Spot gold prices briefly broke below $1,700 on Wednesday after signs of strength in the U.S. economy led to increased expectations that the Federal Reserve will keep raising interest rates at a fast pace. Spot gold fell as much as 0.5% to $1,699.97. Rupee remained stable despite a strong dollar index, supported by RBI intervention and lower oil prices. Rupee could gain in the short term with domestic factors supporting domestic currency, unless the global event continues to weaken further in the next fortnight.
Feedback
Commodity Central 
Reputation: 11,145 • Sep 7, 2022 2:24 PM
Vote
Comment
Share