January 22, 2013 / 3:02 AM / 5 years ago

CORRECTED-MARKET EYE-USD/INR seen lower on hike in gold import tax

(Corrects USD/INR Monday close to 53.765/775 from 53.71/72 in
first paragraph)
* USD/INR is likely to open lower as government raises
gold import duty which will lower dollar demand, says dealers.
Pair likely to open around 53.65 versus 53.765/775 last close.
* India has raised the import tax on gold by 2 percentage points
to 6 percent to curb purchases and rein-in a ballooning fiscal
deficit, but industry officials expect only a moderate drop in
demand. 
* Gold import-related dollar buying is an important source of
dollar demand after oil in currency markets.
* Dealers say government's approval of IKEA's $1.86 billion
India investment plan also positive for rupee. 
* The Nifty India stock futures traded in Singapore 
currently up 0.11 percent, while the MSCI index of Asian shares
ex-Japan 0.03 percent lower.
* Most Asian currencies including won, ringgit trading lower.
See for a snapshot.

 (subhadip.sircar@thomsonreuters.com/subhadip.sircar.thomsonreut
ers.com@reuters.net)

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