Rupee falls 1ps to all-time low of 83.70/$
Hits the all-time low mark for second consecutive day, the dollar index which gauges the greenback’s strength against a basket of six currencies, was trading higher by 0.05% at 104.50
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Mumbai: The rupee depreciated 1paisa to revisit its all-time closing low of 83.70 against the US dollar on Wednesday, weighed down by a strong dollar against major crosses overseas amid investors’ weak appetite for riskier assets. Forex traders said the increase in capital gains tax and removal of indexation benefits announced in the FY25 Budget on Tuesday was the main reason for dollar buying as foreign investors sold stocks. At the interbank foreign exchange market, the local unit opened at 83.69 and touched an intra-day high of 83.68 and a low of 83.72 against the dollar during the session. It finally settled at an all-time low level of 83.70 against the American currency, registering a fall of 1paisa from its previous close.
On Tuesday, the rupee declined 3paise to 83.69 against the US dollar after the government raised tax rates on capital gains in the FY25 Budget. Forex traders said US dollar buying continued to be the theme after the increase in long-term capital gains tax (LTCG) and short-term capital gains tax (STCG) and then the removal of indexation benefits.
