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Rupee strengthens against dollar as Govt announces tax exemption on G-Secs for FPIs
Jun-05-2026

Indian rupee has strengthened against the U.S. dollar on Friday as the Indian government decided to exempt FPIs from income tax on interest income and capital gains arising from investments in government securities (G-Secs). This measure aligns the tax treatment of G-Secs with that of several comparable jurisdictions. The exemption will apply to interest income and capital gains arising on or after April 1, 2026, in respect of FPI investments in G-Secs. A similar income-tax exemption has also been extended to the Bank for International Settlements (BIS) on interest income and capital gains from its investments in G-Secs. On the global front, the euro has strengthened against the U.S. dollar on Friday as investors anticipate a rate hike by European Central Bank in next week.

Finally, the rupee ended at 95.11 (Provisional), strengthened by 63 paise from its previous close of 95.74 on Thursday. The currency touched a high and low of 95.78 and 94.89 respectively.

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