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Rupee ends lower against dollar on Tuesday

23 Jul 2024 Evaluate

Indian rupee ended lower against the U.S. dollar on Tuesday after the government raised tax rates on capital gains in the FY25 Budget. Sentiments were downbeat after government has declared increasing the Securities Transaction Tax (STT) rate on Futures and Options (F&O) from 0.01 percent to 0.02 percent. It also announced raising of long-term capital gains tax (LTCG) on equity to 12.5 per cent from 10 per cent at present while raising short term capital gains tax to 20 per cent from 15 per cent earlier. It also increased the tax exemption limit for LTCG to Rs 1.25 lakh from Rs 1 lakh earlier. Besides, it has kept India’s FY25 capex outlay unchanged at Rs 11.11 lakh crore - the same as was earmarked in February. On the global front, the pound fell slightly on Tuesday, slipping further from last week's one-year high, as investors waited for U.S. inflation data on Friday to shake up subdued currency markets.

Finally, the rupee ended at 83.71 (Provisional), weaker by 4 paise from its previous close of 83.67 on Monday. The currency touched a high and low of 83.72 and 83.61 respectively.

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