Rupee falls 3 paise to close at 83.69 against US dollar post Union Budget 2024

The rupee declined 3 paise to 8369 against the US dollar on Tuesday after the government raised tax rates on capital gains in the Union Budget for Fiscal Year 2025As per the PTI report the forex traders noted a weak tone in the US dollar and weakness in crude oil prices also put pressure on the domestic unit besides the raised tax rates on capital gainsAt the interbank foreign exchange market the local unit opened at 8364 It touched an intraday high of 8361 and an alltime intraday low of 8372 against the dollar during the trading session reported PTIRegistering a fall of 3 paise from its previous close it finally settled at 8369 against the US dollarThe rupee consolidated in a narrow range on Monday to settle 4 paise higher at 8366 against the American currencyHead of Treasury and Executive Director of Finrex Treasury Advisors LLP Anil Kumar Bhansali said Dollar buying continued to be the theme after the increase in longterm capital gains LTCG and shortterm capital gains STCG and then the removal of indexation benefitsHe noted the rupee could soon weaken to 84 as the RBI manages the influx of US dollarsMeanwhile according to the news agency the dollar index which gauges the greenbacks strength against a basket of six currencies was trading higher by 003 per cent at 10434Brent crude futures the global oil benchmark were trading higher by 024 per cent at USD 8260 per barrel reported PTIAnuj Choudhary a Research Analyst at Sharekhan by BNP Paribas noted The rupee touched a record low of 8372 after Finance Minister Nirmala Sitharaman raised tax rates on capital gains which led to a decline in the domestic equity markets The rupee opened higher earlier today on a weak tone in the US dollar and weakness in crude oil prices according to PTIWe expect the rupee to trade with a slight negative bias on weakness in the domestic markets However the decline in crude oil prices and the weak US dollar may support the rupee at lower levels Any intervention by the RBI may also support the rupee Traders may also take cues from existing home sales and Richmond manufacturing index data from the US The USDINR spot price is expected to trade in a range of Rs 8340 to Rs 84 Choudhary addedAs per the news agency report the 30share BSE Sensex fell 7304 points or 009 per cent to settle at 8042904 points and the Nifty dropped 3020 points or 012 per cent to 2447905 points in the domestic equity marketThe government on Tuesday proposed to rationalise the capital gains tax rate and holding period of various assets including securities and immovable properties in Union Budget 2024Listed financial assets will have to be held for more than 1 year while unlisted financial assets and all nonfinancial assets will have to be held for at least 2 years to qualify for longterm capital gains taxAs per the changes proposed in the Union Budget 2024 STCG on listed equity equityoriented mutual funds and units of a business trust has been increased to 20 per cent from 15 per centThe LTCG on these securities is proposed to be hiked to 125 per cent from 10 per cent LTCG up to Rs 125 lakh annually will be exempt from tax up from Rs 1 lakh currentlyForeign Institutional Investors FIIs were net sellers in the capital markets on Tuesday as they sold shares worth Rs 297531 crore according to exchange data reported PTIWith inputs from PTI