Indian rupee declines to record low after government raises tax on capital gains

The Indian rupee declined to record low after the domestic stock market crashed due to the government raising tax on capital gains.

The Indian rupee fell to a record low against the U.S. dollar on Tuesday due to the domestic stock market crash that was caused after Finance Minister Nirmala Sitharaman proposed hiking the capital gains tax during the presentation of the Union Budget 2024.

The rupee declined to 83.69 to the dollar. (Getty Images/iStockphoto)

The rupee declined to 83.69 against the dollar, inching past the previous lifetime low of 83.6775 to the dollar, and compared with 83.6275 before the budget announcement, Reuters reported.