India’s gold imports are slowing to a trickle as banks and bullion traders grapple with new restrictions aimed at shoring up a weak rupee battered by the Middle East war.

An increased import duty and a curb on volumes have strained gold flows into the world’s second biggest bullion consumer. Domestic prices do not currently reflect the additional costs as some speculators offload their existing stockpiles into the marketplace. However, immediate demand is likely to stay low, according to analysts and traders.