In early trade, the rupee and the US dollar move in a limited range.
Forex traders claim that when foreign investors sold off stocks in response to the FY25 Budget's rise in capital gains tax and elimination of indexation benefits, dollar purchases soared.
Mumbai: Weak risk appetite and dollar demand from importers caused the rupee, which was trading in a confined range, to fall 1 paisa to 83.70 against the US dollar in early trade on Wednesday.
Forex traders claimed that the primary cause of dollar purchasing while foreign investors sold stocks was the FY25 Budget's announcement on Tuesday on the hike in capital gains tax and the elimination of indexation benefits.The local unit on the interbank foreign exchange market opened at 83.69 and fell 1 paisa from its previous close, reaching an early low of 83.70.
Following the government's increase in capital gains tax rates in the FY25 Budget, the rupee fell 3 paise to 83.69 against the US dollar on Tuesday.
"The rupee is
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