The rupee decreases by 9 paise to 70.78 against USD

Mumbai, August 9 () The rupee declined 9 countries to close at 70.78 against the dollar on Friday, as market participants were cautious before a meeting between foreign investors and finance ministry officials regarding the higher surcharge fiscal.

In the interbank exchange, the rupee witnessed high volatility. After opening with a strong note at 70.54, the local unit touched a maximum of 70.44 and a minimum of 70.82 against the US currency during the day.

The national unit finally established 9 paise at 70.78 against the US currency. The rupee had settled at 70.69 against the US dollar on Thursday.

FM should seriously reconsider and withdraw an unintentional super-rich surcharge on IPF. If they offer any relief in the long-term capital gains tax, that will certainly contribute greatly to improving feelings on the street, said VK Sharma, Head-PCG Capital Market Strategy, HDFC Securities.

Weekly, the local unit lost 118 paise.

It was a volatile week for the rupee. The week began with the depreciation of the Yuan to the lowest since 2008 and led the rupee to fall to Rs 70.9850, the lowest in five months. However, a rebound in relief was observed after RBI reduced interest rates by 35 bps and rumors about FM reducing FPI taxes, said Rahul Gupta, chief of currency research at Emkay Global Financial Services.

Forex traders said that the trigger for the rupee in the future would be inflation data, any outbreak in the US-China trade war and the geopolitical tensions between India and Pakistan.

We expect the range to be from 70.40 to 71.25 rupees, Gupta said.

Foreign institutional investors (FII) became net buyers in capital markets, putting Rs 203 million on Friday, according to provisional data.

Forex traders said the rise in crude oil prices also weighed on the national currency.

Brent crude futures, the global benchmark for oil, rose 1.43 percent to USD 58.20 per barrel.

The dollar index, which measures the strength of the dollar against a basket of six currencies, fell 0.08 percent to 97.54.

Meanwhile, the 10-year government bond yield was 6.50 percent on Friday.

In the domestic market, the Sensex of 30 shares closed 254.55 points or 0.68 percent higher at 37,581.91. The wider Nifty NSE jumped 77.20 points or 0.70 percent to 11,109.65. Meanwhile, Financial Benchmark India Private Ltd (FBIL) set the benchmark rate for the rupee/dollar at 70.8497 and for the rupee/euro at 79.3913. The reference rate for the rupee/British pound was set at 86.1528 and for the rupee/100 Japanese yen at 66.76. DRR MR MR