January 22, 2013 / 5:44 AM / 5 years ago

MARKET EYE-USD/INR off lows; still mood INR positive

* USD/INR off lows on oil-related dollar buying, pair
at 53.53/54 versus 53.375 low, 53.765/775 last close.
* "The market is now thinking that the government is still
adamant to control the current account deficit. The rupee may
rise to 53.35 levels, possibly today," says dealer.
* 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 the currency markets.

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

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