Indian rupee is not expected to see any strengthening from the current level of 71 against the US dollar any time soon, despite the continuing rally on the Indian equity market. The rupee lost some steam on Monday morning trading hours, losing 14 paise to 71.08 against the US dollar, despite the BSE flagship index S&P Sensex gaining another 700 points in Monday morning trade, after a 1,900 point jump on Friday. Market sources said there has been increased purchase of Dollar by banks and importers on Monday morning hours, leading to weakening of the Indian currency. Forex market analysts said the soon to be released data on the US manufacturing PMI will also have a bearing trend on the movement of the dollar-rupee exchange rates. In a move to revive private investment in the country, India’s Finance Minister Nirmala Sitharaman announced a sharp cut on corporation tax from 30 per cent to 22 per cent and a still lower corporation tax of 15 per cent for companies created on or after October 1, 2019, in the manufacturing sector. While the 8 per cent tax cut for existing companies are subject to the condition that these companies do not avail of any tax incentives or exemptions, the 15 per cent tax proposed for new manufacturing units is linked to the condition that their production should begin on or before March 31, 2023. Though corporate tax has been cut to 22 per cent for companies earning a business income of $56.3 million (Rs 4 billion) and above, the effective tax rate on business income will be 25.17 per cent because of applicable surcharge.