Mumbai: The Indian rupee declined to a record low against the U.S. dollar on Tuesday, pressured by the drop in local equities after the government proposed raising the tax rate on capital gains.
At the interbank foreign exchange market, the local currency opened at 83.64, and touched an early high of 83.62, registering a gain of 4 paise from its previous close. Then it declined to 83.69 to the dollar, inching past the previous lifetime low of 83.6775, and compared with 83.6275 before the budget announcement. On Monday, the rupee settled 4 paise higher at 83.66 against the American currency.
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Meanwhile, the dollar index, which gauges the US dollar’s strength against a basket of six currencies, was at 104.20, lower by 0.10 per cent. Foreign Institutional Investors (FIIs) were net buyers in the Indian capital markets on Monday as they purchased shares worth Rs 3,444.06 crore. On the macroeconomic front, the government’s pre-budget Economic Survey on Monday set a conservative growth forecast of 6.5 to 7 per cent for the current fiscal.
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