Rupee Strengthens by Nearly 50 Paise After RBI Policy Announcement, Investor Relief Measures
Government removes capital gains tax on select foreign investments as RBI eases norms for institutional investors
New Delhi, June 5: The Indian rupee witnessed a sharp recovery on Friday, strengthening by nearly 50 paise against the US dollar following the Reserve Bank of India’s (RBI) monetary policy announcement and a series of relief measures aimed at attracting foreign investment.
After remaining under pressure for several days, the domestic currency gained significant momentum during trading and climbed 50 paise to reach 95.24 against the US dollar. The sharp rise marks one of the strongest recoveries for the rupee in recent times.
The rally in the rupee came after the government announced major relief for Foreign Institutional Investors (FIIs). In a significant move, the government removed capital gains tax on earnings generated from the sale of government securities and interest income earned from them.
Additionally, the RBI introduced regulatory relaxations for foreign institutional investors, a move aimed at boosting investor confidence and encouraging greater participation in Indian financial markets.
Market experts believe the combined impact of policy support, tax relief, and regulatory easing has helped improve sentiment around the Indian currency, offering much-needed relief after prolonged weakness in the rupee.
The measures are expected to strengthen foreign capital inflows and provide stability to India’s financial markets in the coming months.
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