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.
Forex traders said increased demand for the US currency from importers and concerns around the rift between the government and the RBI weighed on the local unit.
At the interbank foreign exchange, the rupee opened weak at 73.74 then slipped further to quote 23 paise down at 73.79 against the US dollar.
Unabated capital outflows by foreign funds, and heavy selling in domestic equities dampened the sentiment, dealers said.
Traders said the selling of the US currency by exporters and foreign fund inflows were the other factors that provided support to the home unit.
The Department of Treasury maintained the same monitoring list but said if India continues with the same practices as in the last six months, it would be removed from its next bi-annual report.
