The Indian rupee appreciated by approximately 50 paise following the government's announcement to scrap capital gains tax on government bonds for foreign institutional investors (FIIs). This policy change is intended to encourage overseas inflows into the Indian bond market. The rupee had been under pressure, trading near record lows due to elevated energy prices and equity market outflows amid ongoing geopolitical tensions in the Middle East. By removing the tax, the government seeks to improve the investment climate and stabilize the currency amidst external challenges. The rupee is languishing near record low levels due to higher energy prices and equity market outflows amid the Middle East conflict.