Rupee strengthens on govt’s tax exemption move for FIIs, gains 50 paise

The rupee appreciated 50 paise to 95.24 against the US dollar in late morning deals on Friday (June 5, 2026) after the government exempted FIIs from capital gains tax while investing in government securities. The  move is likely to boost FII inflows into the market. 

The currency gained 49 paise from the 95.73 mark when the news of tax exemption started trickling in. The government is looking to attract foreign capital to reduce pressure on rupee, which has fallen more than 5% since the start of the year, due to higher oil prices and foreign portfolio outflows in equities.