Rupee Awaits Boost From Gold Duty Hike Amid Oil Pressure
India increased import tariffs on gold and silver to 15% to support the rupee and narrow the trade deficit. However, gains are limited by Brent crude prices near $107 and U.S. inflation rising to 3.8%, which has pushed the 10-year Treasury yield to 4.47%.
India raised import duties on Gold and Silver to 15% from 6% to support the rupee on Wednesday morning. The rupee has fallen over 5% since the war in Iran began, pressured by high energy costs. Investors are weighing whether bullion curbs can offset a widening trade deficit as Brent Crude Oil nears $107.
Traders expect the rupee to open between 95.58 and 95.62 following Tuesday's close at 95.6275. The tariff hike aims to curb demand in the world's second-largest precious metals consumer. Prime Minister Narendra Modi previously urged citizens to avoid bullion purchases for one year to protect foreign exchange reserves.
