Higher gold taxes could backfire again
When governments want consumers to buy less of something, they usually reach for taxes.
When governments want consumers to buy less of something, they usually reach for taxes.
For decades, India has treated the rupee less as an economic instrument and more as a symbol of national prestige.
According to the forex experts, high crude oil prices, and a stronger US dollar have created a volatile situation of the domestic currency amid the ongoing geopolitical tensions.
Dalal Street slipped into sharp losses as geopolitical tensions escalated, pushing oil prices higher and triggering fears around inflation, currency pressure and India’s rising import burden.
At close, the Sensex was down 533.50 points or 0.63% at 84,679.86, and the Nifty was down 167.20 points or 0.64% at 25,860.10.
Foreign fund outflows restricted the rupee upmove.
Forex traders said the weakening of the greenback in overseas markets coupled with sustained foreign fund inflows aided the local unit.
The local unit, however, pared some gains and was quoted at 69.54 against the American currency at 0951 hrs.
The benchmark BSE Sensex was trading with gains of 150.56 points, or 0.39 per cent, at 38,864.41; while the NSE Nifty was trading at 11,692.05, up 50.25 points, or 0.43 per cent. Meanwhile, brent crude, the global benchmark, was trading at 74.14 per barrel lower by 0.28 per cent.
Fresh dollar demand from banks and importers weighed on the Indian currency.
