The rupee soared 42 paise to 66.18 against the US dollar in early trade on increased selling of the US currency by exporters and banks along with higher foreign inflows following BJP’s booming win in Uttar Pradesh. Further, industrial production expanding by 2.7% in January also supported the rupee.
Meanwhile, Crude oil slides Near Rs 3200 Levels On Multi Commodity Exchange. WTI Crude oil has dropped below USD 50 for the first time since in nearly three months following heavy US inventories and selling pressure in major industrial commodities.
US commercial crude supplies have grown for nine consecutive weeks, reaching a record 528.4 million barrels last week, as per the US Energy Information Administration. WTI futures are currently trading just above USD 48 per barrel. MCX Crude dropped 0.77% yesterday to close around Rs 3,200 per barrel.
Gold is trying to edge up after the recent slip. A near 2-month low around USD 1200 per ounce seems to be working for the metal. MCX Gold closed down 0.45% at Rs 28, 238 per 10 grams yesterday, seeing another drubbing after the weekend.
COMEX Gold soared to near 3-month highs on 3 February, since a break above USD 1200 per ounce extended. The commodity currently trades at USD 1223 per ounce, up about 1.25% on the day. The breakout is seeing solid after prices tested their 2-week low near USD 1185 levels earlier this week before recovering sharply. The MCX Gold April futures ended at Rs. 28,874 per 10 grams after hitting highs near Rs 29,080 per 10 grams on 2 Jan, adding 0.67% on the day.
The Finance Minister has proposed to trim down the existing rate of taxation for individual assesses between income of Rs 2.5 lakhs to Rs. 5 lakhs to 5% from the prevailing rate of 10%. This would reduce the tax liability of all persons below Rs 5 lakh income either to zero (with rebate) or 50% of their existing liability.