Rupee strengthens against US dollar in early trade on Thursday
he Indian rupee strengthened against the US dollar in early trade on Thursday, tracking firm domestic equities amidst reports suggesting that the Indian government is actively considering scrapping capital gains tax on investments in government securities by Foreign Portfolio Investors (FPIs) to counteract foreign capital outflows and a weakening rupee. The rupee’s gains were also supported by lower crude oil prices and a weaker dollar as investors ?assessed renewed expectations for a resolution to the US-Israeli war with Iran. Investors are now awaiting the RBI Monetary Policy Committee’s decision, where the central bank is widely expected to keep its benchmark interest rate unchanged at 5.25%. Meanwhile, Foreign institutional investors offloaded equities worth Rs 5,616.56 crore on a net basis on Wednesday, exchange data showed.
The partially convertible currency is currently trading at 95.65, stronger by 11 paise from its previous close of 95.76 on Wednesday. The currency touched a high and low of 95.75 and 95.64 respectively.
