Rupee at near three-month high
Jan 22 2013 , Mumbai
Gold import-related dollar buying is an important source of dollar demand after oil in currency markets.
Foreign bank dealer says net daily gold related USD demand is around $150-170 million and may reduce if gold prices do not go up.
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.