USD/INR: Rupee hits six-week highs near 70.70 on India’s fiscal stimulus

Reuters reports the latest statement from India’s Finance Minister Sitharaman, as she announced a series of fiscal measures to ramp up country’s slowing economic growth.

Key Quotes:

Propose to slash corporate tax rate for domestic firms.

Corporate tax rate slashed to 25.75 % effective tax rate.

No minimum alternate tax on local companies.

New locally incorporated firm on or after October 1 making fresh investment into manufacturing option to pay income tax at 15%.

Passed ordinance to amend income tax act, finance act.

Cut minimum alternate tax (MAT) for companies that continue to avail exemptions to 15%.

New manufacturing companies shall not be required to pay MAT.

Enhanced surcharge to not apply on capital gains arising on sale of equity.

Following the bullish opening gap, the Indian Rupee accelerates the upside vs. the US dollar, with USD/INR now printing fresh six-week lows at 70.675, down 1.00% so far.