Finance minister Nirmala Sitharaman on Friday revoked higher surcharge on the income tax outgo for Foreign Portfolio Investors (FPIs) and domestic investors, reversing the decision taken in Union Budget 2019. "Pre-Budget position is restored," she said. "The same goes for domestic institutional investments," she added.
Additionally, investors were also relieved from the much-awaited enhanced surcharge on long-term and short-term capital gain.
Gold prices rose to more-than-six-year high and benchmark Treasury yields hit their lowest since July 2016 as investors fled to safer assets.
Spot gold jumped 1% to $1,541.30 per ounce as of 0619 GMT, having earlier touched $1,554.56 an ounce, its highest since April 2013.
U.S. gold futures were up 0.9% at $1,551.80 an ounce.
Indian Rupee, along with other Asian currencies, came under pressure in today's trade due to strong dollar demand from banks amid escalating trade tensions between US and China. The domestic currency opened at 72.03 and later fell to 72.08 against the US dollar, showing a decline of 42 paise over its previous closing.
At the Interbank Foreign Exchange, later the local unit fell to its lowest in 2019 at 72.25 per dollar against previous close of 71.66 against the dollar last Friday.
Except for the safe-haven Japanese Yen, rest of global and Asian market currencies were trading weak against the dollar.
Rupee vs Dollar: Indian currency hits fresh low of 72.25 in 2019 amid US-China trade war
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