Mumbai: The rupee depreciated by another 16 paise to 64.18 against the dollar in early session at the interbank foreign exchange today due to concerns over widening fiscal deficit.
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The Centre yesterday introduced a long-term capital gains tax of 10 per cent on stock market gains exceeding Rs 1 lakh, resulting in volatility in forex market.
Forex dealers said that besides increased demand for the American currency from importers, a lower opening of the domestic equity market also kept the pressure on the rupee.
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Yesterday, the rupee had plunged 44 paise to close at a near two-week low of 64.02 against the US dollar. Meanwhile, the benchmark BSE Sensex slumped by 302.66 points, or 0.84 per cent, at 35,604 in early trade today.
