The Indian rupee, teetering at an all-time low, slipped further against the US dollar on Tuesday, pressured by the drop in local equities after the government in the Budget proposed raising the tax rate on capital gains.

Finance Minister Nirmala Sitharaman on Tuesday said the government plans to raise capital gains exemption limit on certain financial assets to Rs 1.25 lakh per year for middle and upper middle class.

The rupee declined to 83.69 to the dollar, inching past the previous lifetime low of 83.6775, and compared with 83.6275 before the budget announcement.

The stock market declined after the Budget announcements, which analysts said could have a negative impact on the markets in the short-term.

Foreign Institutional Investors (FIIs) were net buyers in the capital markets on Monday as they purchased shares worth Rs 3,444.06 crore, according to exchange data.

The Economic Survey 2023-24, which was tabled in Parliament on Monday, projected India’s GDP to grow at 6.5-7 per cent in 2024-25, down from a high of 8.2 per cent in the the preceding financial year.

The projection in the Economic Survey is a tad lower than the Reserve Bank’s growth estimates of 7.2 per cent.

(With agency inputs)