Further, foreign investors (FII) continued to sell their equity holdings on the bourses.
The Indian rupee opened at Rs 78.50 and went down to touch a fresh record low of 78.68 against the dollar.
As crude prices increase, the rupee may further slip down, analysts said.
The Reserve Bank of India (RBI) intervened by selling dollars to stabilise the rupee rate but the demand for the US currency was high.
According to a report by Emkay Global Financial Services Ltd, a total of $34 billion (FII equities and FII debt) has flown out of India during the last eight months.
As the world faces dollar funding stress, the RBI's foreign exchange management strategy (spot intervention + Buy-Sell swaps) could backfire, if persisted for long, Emkay Global said.
According to Emkay Global, the Indian rupee performance has been caught between worsening external terms of trade led by oil, a fast-changing global risk environment, sharp foreign portfolio investments (equity) outflows and the RBI's foreign exchange stance.
The rupee fell 14 paise to 77.69 per US dollar.
Money market participants are currently closely watching the domestic share market for clues to fund flows.
An expectation of tightening monetary policy rates in the US also weighed on the rupee as any rate hike in the advanced markets typically follows with fund outflows from the emerging markets in order to accumulate higher returns.
Rupee has been under-pressure after the global central banks started the normalising policy and last week RBI too started raising key interest rates.
Besides, the rupee weakened on account of a surge in the global crude oil prices.
But, now the table seems to have turned. It seems coins have lost their market value which has become the reason for all trouble for possessors.
June 30, 2011, marked the demonetization of the lowest circulating coin, 25 paise, and 50 paise became the lowest denomination circulating coin. Gradually the 50 paisa coins lost their market value and was unofficially banned in the market. Even though there is no regulation or any ban on their use, coins of all denominations are slowly losing their significance.
Even banks are refusing to accept the deposit of coins. Under such circumstances, possessors with a heap of coins are now staring at uncertainty.
Every day, devotees donate coins in huge numbers at hundis (donation box) of temples which get further deposited in banks by the administration. Same is the case with the Ghatagaon Tarini Temple administration.
Deposits in form of coins are getting piled up at the State Bank of India (SBI) Ghatagaon branch.
As per reports, currently the SBI branch has around Rs 53 lakh in coins. Similarly, a Bank of India branch in Keonjhar has piled up around Rs 27 lakh in coins. Every day, the amount is increasing which is also turning into a headache for the banks.
Meanwhile, the SBI branch's management has asked the temple administration not to deposit coins as the bank is running out of space.
"The banks are unable to distribute the coins to others for which they have asked the temple administration not to deposit coins until they distribute the present stock," informed Sanjeev Mohapatra, member of Ghatagaon Tarini Temple board.
Similar is the condition of several other famous temples including Nabarangpur's presiding deity Maa Bhandari Gharani and Maa Majhighariani Temple of Rayagada. In a single year, around Rs 3-4 lakh donation is collected from the hundis in form of coins.
Meanwhile, temple trustees have warned of taking up the matter with the Reserve Bank of India if the banks don't accept the coins.
"We will contact the senior officials of RBI and SBI so that they can streamline the deposit of coins so that we don't face any issue every other day," said a member of Majhighariani Temple trust.
Not just temples are facing the trouble of an unofficial ban on coins. Even beggars sitting in front of the temples are facing the brunt. The beggars are not accepting coins anymore in form of donations.
"We are unable to purchase anything with the coins received in donation as the shopkeepers refuse to accept those," said a beggar.
Even, shopkeepers and traders have a similar story to share. A shopkeeper said that 50 paisa coins are not in circulation for 2 years now and no one is even accepting small size Re 1 coin.
As per OTV's reality check, the employees at RBI also refused to accept coins as the bank already has a heap of coins.
Though no official announcement has been made regarding the ban on 50 paise and Re 1 new coins, those have been unofficially banned and are not in circulation. Coins valuing over crore are lying useless.
Meanwhile, economists have expressed concerns over the matter.
"Public has self-declared several coins as 'banned'. The flow of money during transactions is affected by this. This will impact the economic growth of the country. It is essential to spread awareness publicly regarding the legal tenders," said Kumarbar Das, an economist.
On the other hand, Pratap Swain, a former bank official said, "The RBI has instructed all banks to accept coins as well as mutilated notes as deposits. The banks are bound to accept and exchange the legal tenders. Coins are and will remain in use."
To trade on the Unocoin platform, a minimum top-up of Rs 1,000 is required. The maximum that the user can deposit can range up to Rs 2 Lakh via UPI mode and Rs 1.5 crore via bank IMPS/UPI/NEFT/RTGS mode, the startup said in a statement.
During the recharge process through UPI account, on clicking on ‘submit', the app will share a link via SMS that will help the user make the payment via UPI ID. One can also directly go to the UPI app to make the payment.
"There is still uncertainty among the prospective users regarding the usage of cryptocurrency in comparison to real money. We want all our users to have the ease of trading or exchanging on our platform," said Sathvik Vishwanath, CEO and Co-Founder, Unocoin.
"While there were other modes of banking options available since the app's inception, UPI payment under INR deposits will add the convenience of instant and hassle-free proceedings," he added.
Started in 2013, Unocoin operates India's largest BTC-INR trading platform which enables people to buy, sell, store, use and accept Bitcoin.
At its peak, Unocoin processed transactions worth more than Rs 2 billion per month for its more than 13 lakh customers.
Unocoin last month enabled FASTag payment services for its users. The application will support a top-up starting from a minimum of Rs 100 to a maximum of Rs 10,000 and unlimited transactions through the day while ensuring that there is enough bitcoin in the user account to cover it.
Open up your box where you have stored the Indian currencies and search for the banknotes. Check out the serial number of the notes. If the note has a serial number ending with '786', you are probably a few steps away from becoming a 'Lakhpati'.
Review These Points Before The Final Execution
1. Make sure about the authenticity of the currency note.
2. The banknotes must be issued by the Reserve Bank of India (RBI).
3. The notes must be in good condition.
4. You can exchange all currency notes in circulation, i.e. Rs 5, 10, 20, 50, 100, 200, 500, 2000. You can also look out for old notes which are unused.
5. Above all, make sure the serial number of the note ends with '786'.
Significance of '786'
786 is considered a lucky or holy number. Especially, the significance of this number in Islam is above everything. The number is believed as a numeric form of the Arabic phrase “Bismillah al-Rahman al-Rahim”, meaning, ‘In the name of God, the Most Gracious, the Most Merciful’.
For this reason, the demand for the currency notes with 786 serial number are high.
You need to follow a few steps after finding the currency note/s with 786 serial numbers which can likely fetch you a huge amount of money.
Steps To Follow
1. Search for coin trading sites like Coinbazaar or Quikr.
2. Register yourself and open an account on any of these sites.
3. Click a photo of the banknotes with '786' serial number.
4. Upload the pictures of the notes on the site following the steps.
5. Update your address, mobile number and email address.
6. Quote a price for your item.
7. Interested bidders will contact you.
8. However, you can bargain with the purchaser and lock the final deal as suitable.
9. The buyer will directly contact you. Hence, you can set the terms of payment and delivery.
Prevailing time is tough for many as they have lost their jobs and source of earning owing to the pandemic situation. People are searching for several other ways to make some money and strengthen their financial condition. If you are one among such persons, you can try your luck and may earn cash exchanging cash.
RBI Caution Against Coin/Note Trading Online
A few days back, the Reserve Bank of India (RBI) had cautioned the public from falling prey to 'fictitious deals' offered by unscrupulous elements by using its name to sell or buy old coins and notes.
In its letter, RBI stated that "It has come to the notice of RBI that certain elements are fraudulently using the name/ logo of Reserve Bank of India, and seeking charges/ commission/ tax from public, in transactions related to buying and selling of old banknotes and coins through various online/ offline platforms."
Further clarifying about the online trading of coins/notes, it said, "It is clarified that Reserve Bank of India does not deal in such matters and never seeks charges/ commissions of any sort. Reserve Bank of India has also not authorised any institution/ firm/ person etc. to collect charges/ commission on its behalf in such transactions."
Options are available through which you can get ‘cash for cash’ deal and improve your financial condition.
The Indian government had demonetised Rs 500 and Rs 1000 banknotes in November 2016. People across the country returned the demonetised notes to different banks before those got officially declared as ‘banned’.
However, many are left with such banned banknotes which are currently valueless in market. If you think so, think again!
You can make good money with the ‘cash for cash’ deal if you still have the old Rs 500 note banned back in 2016.
There are ways you can earn Rs 5000 to Rs 10, 000 in exchange of the old Rs 500 banknote. However, you need to fulfil certain conditions to hit the jackpot.
The Reserve Bank of India (RBI) prints all banknotes with a unique pattern as well as serial numbers. Though you won’t find any variation in the notes except the serial numbers, every note has its unique pattern. However, while printing the notes, some mistake occurs. Such errors while printing the currency makes it invaluable.
Check the serial numbers printed on the RS 500 banknote you own. In general, the serial numbers get printed on the notes twice at the corners. However, if the note has only one serial number printed on it, then it can fetch you up to Rs 5000.
Apart from that, look out for the edges of the note. If any particular edge of the note is larger than usual, you can earn Rs 10, 000 by selling the note.
Several numismatists who are fond of collecting such rare items, are likely to lock a favourable deal and you can earn good money. The rare items though are invaluable in trading, they can turn good money fetching option for you.
You need to access the best platform to showcase your item where credible buyers throng in search of such rare items.
Coin trading sites like Quikr and Coinbazzar can help you find potential buyers. You need to create an account providing the credential as required. You need to specify your contact number as well as email ID for registration purpose and this will be the only means for the buyer to communicate with you.
After you register yourself on the coin trading sites, click a few photos of the Rs 500 banned banknote and upload it on the site. Potential buyers will reach out to your post and contact you if interested in the item. You can bargain the deal amount as per your choice.
So, what are you waiting for! Search for the old banknotes and elevate your financial backup locking a favourable deal.
Here is a golden opportunity that may fetch you as much as Rs 5 lakh.
Numismatists collect a wide range of old items including coins and banknotes. The items may also include traditionally used Mughal coins or even coins from the British era. However, you don't need to search for such old coins from the past. Open your coin box and search for Rs 2 coins.
However, you need to meet the criteria to hit the jackpot.
If you are a proud owner of such coins, you may be a few steps away from hitting the jackpot and earn some quick money.
You need to follow the steps so that you may get benefited of the golden opportunity:
If you are one among the lucky numismatists, you may make easy money with your old collection of coins. So, what are you waiting for? Open your box and search for a Rs 2 coin!
Check This RBI Warning
Recently, RBI cautioned the public from falling prey to 'fictitious deals' offered by unscrupulous elements by using its name to sell or buy old coins and notes.
"It has come to the notice of Reserve Bank of India that certain elements are fraudulently using the name/ logo of Reserve Bank of India, and seeking charges/ commission/ tax from public, in transactions related to buying and selling of old banknotes and coins through various online/ offline platforms. It is clarified that Reserve Bank of India does not deal in such matters and never seeks charges/ commissions of any sort. Reserve Bank of India has also not authorised any institution/ firm/ person etc. to collect charges/ commission on its behalf in such transactions. Reserve Bank of India advises members of public to remain cautious and not to fall prey to elements using the name of Reserve Bank of India to extract money through such fictitious/ fraudulent offers," said RBI in the warning issued on August 4, 2021.
Experts at the European Central Bank, in collaboration with researchers at Ruhr-Universitat Bochum in Germany, wanted to clarify how long do coronaviruses remain infectious on banknotes and coins? Is it possible to become infected through contact with cash?
The team treated various euro coins and banknotes with virus solutions of different concentrations and over several days observed how long infectious virus was still detectable. A stainless-steel surface served as a control in each case.
While infectious virus was still present on the stainless-steel surface after seven days, on the 10-euro banknote, it took only three days to completely disappear.
For the 10-cent, 1-euro, and 5-cent coins after six days, two days and one hour, respectively, no infectious virus was detectable.
"The rapid decline on the 5-cent piece is because it's made of copper, on which viruses are known to be less stable," explained Daniel Todt, from the varsity's Department of Molecular and Medical Virology.
The study was published in the journal iScience.
The researchers also developed a new method to study how well the virus is transferred from a surface to the fingertip.
They contaminated banknotes, coins and credit-card-like PVC plates with harmless coronaviruses and, under high-security conditions, also with SARS-CoV-2.
These surfaces were then touched, while still wet or when already dried, by test subjects with their fingertips or, in the case of SARS-CoV-2, with artificial skin.
Cell cultures were then inoculated with the viruses adhering to the fingertips. This allowed the researchers to determine the number of transmitted virus particles that were still infectious.
"We saw that immediately after the liquid had dried, there was practically no transmission of infectious virus," Todt said.
"Under realistic conditions, infection with SARS-CoV-2 from cash is very unlikely," he added.
Smear infections via surfaces are almost non-existent. The current study was conducted with the Alpha variant of SARS-CoV-2 in addition to the wild-type variant.
"We assume that other variants, such as the currently predominant Delta variant, also behave similarly," said Eike Steinmann, Professor at the varsity.
COVID pandemic has given a severe blow to the financial backbone of many. People have lost their jobs, while many are reeling under economical crisis. In such challenging times, people having a collection of such rare and vintage items can earn good money and strengthen their financial backup by trading those online.
Open your old chests to find the old, rare and banned Indian currencies. The old items will turn rewarding for you and you can stabilize your life and help your family financially in these challenging times.
Trade Your Old Coins On Coinbazzar
Visit Coinbazzar website and get registered on the site. You will require furnishing your name, email ID and full address to create an account on the site. After opening an account on the coin trading site, you need to showcase the vintage, old and demonetized coins as well as banknotes on the site. Along with that, you need to quote the price you expect from the deal. Interested buyers who come across your deal will contact you and finalise the exchange deal.
As per the recent trading value, 10 pieces of ONGC commemorative Rs 5 coins get sold for Rs 200 on the coin trading site. Meanwhile, Rs 100 note with a rare numerical series- 000 786- along with the signature of former RBI governor D Subbarao is being sold at Rs 1, 999.
If you have found an old Rs 10 note from your magic box or piggy bank, check for these credential to win a jackpot! Find if the note has an Ashoka pillar printed on one side and a boat on the other side. Also check if the printing year is 1943. The note must also have the signature of then RBI governor CD Deshmukh. If you fulfil all these criteria then check if the 10 Rupees is written in English language on both ends of the note on the backside. If the Ten rupee note contains all these features then put it on for trading on Coinbazzar for Rs 25, 000 or even more. Of course, you reserve all rights to bargain with the buyer.
Coinbazzar is a platform popular for trading coins, paper money, medals and several other old items.
Sell Vintage Coins On Quickr
Apart from Coinbazzar, you can trade the old coins and banknotes on Quickr. If you own Queen Victoria’s coins from the year 1862, you can trade those for Rs Rs 1.5 lakh. Similarly, the Re 1 silver coin manufactured in 1862 is under the rare coin category. If you have a good collection of antique coins which are banned or not in use, you can place an advertisement of those coins on the site and trade them for a huge amount.
Like Coinbazzar, you need to register on the e-Commerce platform as an online seller. After registration, you need to upload a photo of the coins/notes on the site. The prospective buyers will contact you directly on Quickr. You can negotiate with the potential buyers and lock the deal as per your terms of payment and delivery.
You will get the real reward of currency collection when you let your collected coins age. Time will raise their value and you can become a lakhpati by trading the banned/rare/old items.
Around 1.25 p.m., the Indian rupee traded at 74.27 to a dollar -- the lowest ever against the greenback.
The Indian currency made a slight recovery at 1.35 p.m. to stand at 74.26 to a USD.
It opened the day's trade at the Inter-Bank Foreign Exchange Market at 73.85 to a USD from its previous close of 74.07.
The rupee opened strong at 69.83 at the interbank forex market, then gained further ground to touch 69.70 per dollar, displaying gains of 32 paise against the greenback over its previous close.
The local unit, however, pared some gains and was quoted at 69.79 against the American currency at 0943 hrs, displaying gains of 23 paise over its last close.
The rupee had rebounded by 23 paise to close at 70.02 against the US dollar Friday.
Currency market was shut on Monday due to general elections in Mumbai.
Forex dealers said, selling of the American currency by exporters supported the rupee. Besides the decline in Brent crude oil prices from a six-month high of USD 75.60/barrel also supported investor sentiment in the forex market.
Brent crude, the global benchmark, was trading at 71.93 per barrel lower by 0.15 per cent.
Meanwhile, Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 70.73 crore Friday, as per provisional data.
The benchmark BSE Sensex opened on a cautious note and was trading at 38,927.35, down 139.98 points or 0.36 per cent; while the NSE Nifty was trading 11,701.05, down 53.60 points or 0.46 per cent.
The domestic currency opened strong at 69.48 and later rose to the day's high of 69.10 at the interbank forex exchange market.
The Indian unit finally settled at 69.26, higher by 44 paise from the previous close. The rupee Friday had settled at 69.70 to the US dollar.
This is the second straight session of gain for the domestic currency, during which it has strengthened by 58 paise.
Forex traders said the rupee strengthened on expectation of a rate cut in key policy rates by the Reserve Bank of India.
The RBI's Monetary Policy Committee (MPC) is slated to announce its bi-monthly policy Thursday.
"Falling crude oil and slowing economic growth boosted speculations of monetary easing by the Reserve Bank of India (RBI) in its next bi-monthly policy. Market is already pricing 25 bps cut interest rate and surplus liquidity conditions after majority government at the Centre," said V K Sharma, Head PCG & Capital Markets Strategy, HDFC Securities.
Moreover, heavy buying in domestic equities, selling of the American currency by exporters and foreign fund inflows also supported the local unit.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.11 per cent to 97.64.
"Fall in US treasury yields and bets for the US interest rate cut weighted on the American Dollar," Sharma said.
Meanwhile, the 10-year government bond yield was at 6.99 per cent on Monday, against the previous close of 7.03 per cent on Friday.
According to Sharma, sharp fall is being witnessed in crude oil prices in the last three sessions and the same helped the rupee to appreciate against the dollar.
Meanwhile, Brent crude futures, the global oil benchmark, rose 1.02 per cent to trade at USD 62.62 per barrel.
Foreign funds infused Rs 3,068.88 crore in the capital markets on a net basis Monday, provisional data showed.
Benchmark equity indices ended at their life-time highs on Monday. The 30-share Sensex also saw its all-time peak in intra-day trade at 40,308.90; while the 50-share Nifty rose to 12,103.05 during the session to mark its all-time high.
The BSE gauge finally settled 553.42 points, or 1.39 per cent, higher at 40,267.62. The broader NSE benchmark surged 165.75 points, or 1.39 per cent, to settle at 12,088.55.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 69.8058 and for rupee/euro at 77.7288. The reference rate for rupee/British pound was fixed at 88.0093 and for rupee/100 Japanese yen at 64.08.
At the interbank foreign exchange market, the rupee opened at 68.86 per dollar and advanced to a high of 68.49 during the day. It finally settled at 68.50, up 39 paise against its previous close of 68.89.
Meanwhile, the Economic Survey 2019 stressed the need to give a huge boost to spending and reforms to accelerate higher rate of expansion to double the economy's size to USD 5 trillion by 2024-25.
Forex traders said the budget will give further cues going ahead in the currency market .
"Rupee gain was followed by stronger emerging market currencies. Lower crude oil prices and stronger domestic equity markets supported rupee in Thursday's trade," said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.
Meanwhile, the 10-year government bond yield was at 6.75 per cent on Thursday.
"India's 10-year sovereign bonds are trading higher as a key government report said the federal and state administrations are generally on the path of fiscal consolidation," Sharma said.
Brent crude futures, the global oil benchmark, slipped 0.13 per cent to USD 63.74 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 28.95 crore on Thursday, as per provisional data.
The dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.03 per cent to 96.73.
In the stock market, the 30-share BSE Sensex settled 68.81 points, or 0.17 per cent, higher at 39,908.06; while the broader NSE Nifty climbed 30 points, or 0.25 per cent, to 11,946.75.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 68.8776 and for rupee/euro at 77.7256. The reference rate for rupee/British pound was fixed at 86.6076 and for rupee/100 Japanese yen at 64.00.
Forex traders said, strengthening of the US dollar vis-a-vis against other currencies overseas kept pressure on the Indian rupee.
The rupee opened weak at 68.98 at the interbank forex market and then fell further to 69.05, down 13 paise over its last close.
The rupee had settled at 68.92 against the US dollar on Monday.
Traders said, market participants are not very hopeful about large-scale easing by the Reserve Bank, following RBI Governor Shaktikanta Das's statement, wherein he said a change in monetary policy stance effectively equates to an additional 25-bps rate cut.
However, a positive opening in domestic equities supported the local unit and restricted the fall.
Going ahead, global cues like ECB meeting on Thursday, the US Q2 preliminary GDP print on Friday and the FOMC meeting on July 31, are expected to impact rupee movement, traders said.
Brent crude futures, the global oil benchmark, rose 0.13 per cent to USD 63.34 per barrel.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,916.91 crore on Monday, as per provisional data.
Domestic bourses opened on a positive note day with benchmark indices Sensex trading 50.03 points up at 38,081.16 and Nifty up 13.55 points at 11,359.75.
Forex traders strengthening of the greenback vis-a-vis other currencies overseas and cautious opening in domestic equities weighed on the local unit.
Forex traders said though the US Federal Reserve cut the benchmark lending rate on Wednesday for the first time in more than a decade, market participants reacted to Fed Chair Jerome Powell statement which indicated dampened hopes of further rate cut.
The rupee opened weak at 69.17 at the interbank forex market and slipped further to 69.20, showing a decline of 41 paise against its previous close.
The domestic unit had settled at 68.79 against the US dollar on Wednesday.
Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 1,497.07 crore on Wednesday, provisional data with the exchanges showed.
The 30-share index was trading 205.69 points or 0.55 per cent lower at 37,275.43; and the broader Nifty fell 16.15 points or 0.44 per cent to 11,069.25.
The dollar index, which gauges the greenback's strength against a basket of six currencies, inched up 0.35 per cent to 98.85.
Meanwhile, the government's fiscal deficit touched Rs 4.32 lakh crore for the June quarter, which is 61.4 per cent of the budget estimate for 2019-20 fiscal.
Brent crude futures, the global oil benchmark, climbed 0.70 per cent to USD 65.17 per barrel.
The 10-year government bond yield was at 6.40 per cent in morning trade.
At the interbank foreign exchange, the rupee witnessed high volatility against the US dollar. The local unit opened strong at 70.80 and touched a high of 70.71 and a low of 70.83 against the American currency in early trade on Thursday.
The domestic unit was trading at 70.87 against the dollar at 1010 hrs.
Rupee had settled at 70.89 against the American currency on Wednesday.
Forex traders said rupee is trading in a narrow range tracking cautious opening in domestic equities. Besides, foreign fund outflows and rising crude oil prices also weighed on local currency.
The Reserve Bank of India (RBI) on Wednesday cut interest rate by a rare 35 basis points -- the fourth successive reduction -- to a nine-year low, in an attempt to boost an economy growing at its slowest pace in nearly five years.
"While we believe that RBI's response could have been more aggressive with a 50 bps cut, the policy undertone remains dovish with growth revival assuming the highest priority... Also, it is pertinent to note that in the absence of fiscal expansion, monetary policy is the key lever to support the business cycle," Edelweiss Securities said in a research note.
Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 383.66 crore on Wednesday, according to provisional exchange data.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.01 per cent to 97.53.
Brent crude futures, the global oil benchmark, rose 2.74 per cent to trade at USD 57.77 per barrel.
Domestic bourses opened on a cautious note on Thursday with benchmark indices Sensex trading 37.01 points higher at 36,727.51 and Nifty up 5.75 points at 10,861.25.
The 10-year government bond yield was at 6.37 per cent in morning trade.
At the interbank foreign exchange, the rupee opened at 70.54, then gained momentum and touched a high of 70.47, registering a rise of 22 paise over its previous close.
The domestic unit pared some gains and was trading at 70.53 against the dollar at 1006 hrs.
Forex traders said positive opening in domestic equity market, easing crude oil prices and reports that leading foreign investors will meet senior finance ministry officials on Friday on issues like higher tax surcharge supported the domestic unit.
On Thursday, the rupee snapped its five-day losing streak to close higher by 20 paise at 70.69 against the US dollar on Thursday tracking sharp gains in domestic equities after reports of rollback of a tax surcharge on foreign portfolio investors.
Meanwhile, foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 437.39 crore on Thursday, according to provisional exchange data.
The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06 per cent to 97.55.
Brent crude futures, the global oil benchmark, fell 0.26 per cent to trade at USD 57.23 per barrel.
Domestic bourses opened on a bullish note on Friday with benchmark indices Sensex trading 247.29 points higher at 37,574.65 and Nifty up 77 points at 11,109.45.
The 10-year government bond yield was at 6.41 per cent in morning trade.
At the Interbank Foreign Exchange, the rupee opened weak at 71.33 then fell to 71.47 against the US dollar, showing a decline of 20 paise over its previous closing.
The Indian rupee on Wednesday had closed at 71.27 against the US dollar.
Forex market was closed on Thursday on account of Independence Day.
Traders said cautious opening in domestic equities, rising crude oil prices, strengthening of the greenback vis-a-vis other currencies overseas weighed on the local unit.
While foreign fund inflows added support to the domestic unit.
Foreign institutional investors (FIIs) remained net buyers in the capital markets, putting in Rs 1,614.63 crore on Wednesday, as per provisional data.
Meanwhile, brent crude futures, the global oil benchmark, rose 0.94 per cent to USD 58.78 per barrel.
Domestic bourses opened on a cautious note on Friday with benchmark indices Sensex trading 157.74 points down at 37,153.79 and Nifty lower by 55.55 points at 10,973.85.
The dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.07 per cent to 98.21.
The 10-year government bond yield was at 6.58 per cent in morning trade.
On the global front, US President Donald Trump has said that China is doing very poorly as a result of the trade war.
"I think the longer the trade war goes on, the weaker China gets and the stronger we get. We're taking in massive amounts of money. Billions and billions of dollars. And I think the longer it goes, the stronger we get. I have a feeling it's going to go fairly short," he said on Thursday.
Rising crude oil prices and foreign fund outflows weighed on the domestic currency, forex dealers said.
Crude oil spurted 0.44 per cent to USD 61.81 per barrel in anticipation that new Saudi energy minister, Prince Abdulaziz bin Salman, would push for production cuts.
At the interbank foreign exchange market, the local unit witnessed heavy volatility. During the day, the domestic unit shuttled between a high of 71.50 and low of 71.73.
The rupee finally settled at 71.71, higher by just 1 paise over its previous close. The rupee has extended gains for the fourth day in a row. The rupee had settled at 71.72 against the US dollar on Friday.
Foreign institutional investors (FIIs) remained net sellers in the capital market, pulling out Rs 188.08 crore on Monday, according to provisional exchange data.
Forex traders said market investors were optimistic about cut in interest rates by the US Federal Reserve.
"Market participants have been pricing in some form of a monetary easing as yield curves have inverted in the last month in the US and a breather is very much needed on the cards," Rajesh Cheruvu, The Chief Investor, Validus Wealth.
Cheruvu further said that "there have been some comforting signs of the trade war simmering down and the Brexit and Hong Kong protests have eased somewhat though, remains to be seen whether optimism persists."
Going ahead, the European Central Bank (ECB) rate decision, the US CPI and retail sales would be closely watched metrics for forex traders this week.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, slipped 0.06 per cent to 98.33.
The 10-year government bond yield was at 6.58 per cent on Friday.
On the domestic market front, after opening on a negative note, the 30-share index rebounded 460 points from the day's low of 36,784.47 to settle 163.68 points, or 0.44 per cent, higher at 37,145.45. Similarly, the broader NSE Nifty rose 56.85 points, or 0.52 per cent, to close at 11,003.05.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 71.7323 and for rupee/euro at 79.2097. The reference rate for rupee/British pound was fixed at 88.5057 and for rupee/100 Japanese yen at 67.04.
Divyang (disabled) artist Tillu Tawri has used currency notes in denominations of Re 1 and Rs 10, 100, 200, 500 and 2,000 for making the elephant-headed God's idol displayed at the Veer Bhagat Singh Ganesh Utsav Mandal here for the Ganesh festival.
Tawri told PTI that he made the idol in three days.
"This idol is completely eco-friendly and has been installed on a paper canvas with the help of stapler pins. All care has been taken not to damage any currency note," he said.
As notes worth Rs 21 lakh have been used in making the idol, police are guarding it round-the-clock, he said.
The 10-day long Ganesh festival is set to conclude on Thursday, on the occasion of 'Anant Chaturdashi', with the 'visarjan' (immersion) of idols.
But, since the Ganesh idol here is made of real currency notes, it would not be immersed in water, Tawri said.
"Instead, we will dismantle the structure on Thursday evening and the currency notes will be handed over to the mandal authorities. This idol does not create any pollution," he said.
A large number of devotees have been thronging the pandal to catch a glimpse of the unique art work.
Tawri said last year, he sculpted a Ganpati idol with 1,100 coconuts while in 2017, he created an idol out of different sports items like balls, cricket bats and racquets.
Forex traders said fall in global crude oil prices and fresh foreign fund inflows also enthused investors.
US Treasury Secretary Steven Mnuchin on Thursday said that US wants to make 'meaningful progress' in China trade talks.
At the interbank foreign exchange the rupee opened at 70.94, then gained further ground and touched a high of 70.88, registering a rise of 26 paise over its previous close.
The domestic unit however could not hold on to the gains and was trading at 70.99 against the dollar at 1001 hrs.
On Thursday, the rupee had settled for the day at 71.14 against the US dollar.
China on Thursday welcomed US President Donald Trump's "goodwill" gesture to postpone a planned tariff hike on Chinese products, as the two countries warmed up to each other ahead of next month's talks to end their bruising trade war.
President Trump on Wednesday had said that he had delayed his proposed increased tariffs on USD 250 billion worth of Chinese goods from October 1 to October 15.
Forex traders said, easing crude oil prices supported the local unit.
Brent crude futures, the global oil benchmark, eased 0.28 per cent to trade at USD 60.21 per barrel.
Meanwhile, domestic bourses opened on a cautious note on Friday with benchmark indices Sensex trading 19.29 points lower at 37,084.99 and Nifty down 1.50 points at 10,981.30.
Strengthening of the American currency vis-a-vis other currencies overseas also weighed on the local unit. The dollar index, which gauges the greenback's strength against a basket of six currencies, rose marginally by 0.02 per cent to 98.32.
c (FIIs) remained net buyers in the capital market, putting in Rs 783.55 crore on Thursday, according to provisional exchange data.
The 10-year government bond yield was at 6.66 per cent on Friday.
Surging crude oil prices have emerged as major fears for India -- the world's third largest oil importer -- in form of fiscal slippage and inflationary pressure.
The drone attacks on Saturday targeted Abqaiq, the site of the largest oil processing plant run by the Saudi state oil company, Aramco, and the Khurais oilfield.
At the interbank foreign exchange market, the local unit opened lower at 71.54, then fell to a low of 71.63 during the day. The rupee finally closed at 71.60, down 68 paise over its previous close.
The Indian currency had settled at 70.92 against the US dollar on Friday.
Crude oil benchmark, Brent Futures, surged by almost 20 per cent to USD 71.95 per barrel (intra-day) on Monday after twin drone attacks on Saturday wiped out more than half of Saudi Arabia's crude supply. It was also the biggest gain in Brent in dollar terms since futures started trading in 1988.
However, Brent Futures saw some moderation and was trading at USD 66.63 per barrel, still up 10.59 per cent over the previous close.
Meanwhile, the dollar index, which gauges the greenback's strength against a basket of six currencies, rose 0.13 per cent to 98.38.
"The INR and other emerging currencies that rely on huge Crude imports have been spooked by this turn of events as the ripple effects on currency are two-fold: 1) an increase in imported inflation i.e. rising CPI and 2) a hit on the trade deficit," said Rajesh Cheruvu, Chief Investment Officer, Validus Wealth.
Finance Minister Nirmala Sitharaman on Saturday unveiled over Rs 70,000 crore of measures for exporters and the real estate sector, including about Rs 30,000 crore new spending in plans such as setting up of a stressed asset fund, as part of efforts to boost economic growth from a six-year low.
"Nirmala Sitharaman announced new measures for boosting economy on Saturday but positive impact on rupee was negated by the negative development of spike in brent crude prices," HDFC Securities Head PCG and Capital Markets Strategy V K Sharma said.
Besides, heavy selling in domestic equity market and sustained foreign fund outflows also weighed on the domestic currency, forex traders said.
The 30-share BSE Sensex ended 261.68 points, or 0.70 per cent, lower at 37,123.31. The broader NSE Nifty too settled 79.80 points, or 0.72 per cent, down at 10,996.10.
Foreign institutional investors (FIIs), who were net buyers for the past few sessions, offloaded shares worth Rs 751.26 crore on Monday, according to provisional exchange data.
The 10-year government bond yield was at 6.72 per cent on Monday.
The Financial Benchmark India Private Ltd (FBIL) set the reference rate for the rupee/dollar at 70.9387 and for rupee/euro at 78.5646. The reference rate for rupee/British pound was fixed at 87.6547 and for rupee/100 Japanese yen at 65.64.
According to the Reserve Bank of India's (RBI) Monetary Policy Report for October 2019, rising protectionism, slowdown in global trade may increase volatility in the financial markets.
"The INR depreciated vis-a-vis the US dollar in August 2019, reflecting global developments. Looking ahead, rising trade protectionism, slowing global trade and global output could increase volatility in the international financial markets and exert further downward pressure on the currency," said the report.
It noted that if the rupee depreciated by 5 per cent from the baseline, inflation could edge up by around 20 basis points (bps) and boost net exports and GDP growth by around 15 bps.
The report further said that a slew of measures taken by the government to boost output and investment, policy reforms in the FDI (foreign direct investment) regime, and greater than expected monetary policy accommodation by the central banks in major advanced economies (AE) may attract increased capital inflows and lead to an appreciation of the rupee.
An appreciation of the rupee by 5 per cent could moderate inflation by around 20 bps and GDP growth by around 15 bps from the the baseline, it said.
The Indian rupee has largely been subdued and depreciated in the past few months. Currently, it is trading over 71 per dollar.
Outflow of foreign funds has also hampered the movement of rupee. Foreign Institutional Investors (FII) sold Rs 3,286.42 crore in October so far.
According to the report headline inflation is projected to remain below the medium-term target of 4 per cent over the rest of 2019-20 and the early months of 2020-21.
"Volatility in international and domestic financial markets, as well as global crude oil prices, and domestic prices of perishable food items pose upside risks to the baseline inflation path. On the other hand, the softer outlook on global commodity prices and large buffer stocks could keep headline inflation below the baseline," it said.
They have also directed their accountants to deposit cash balances of Rs 2,000 notes in banks.
An internal advisory by a Karnataka-based logistics firm on the possible demonetisation has been making the rounds on social media but its authenticity could not be ascertained immediately. Multiple attempts to reach the firm on the telephone number given on the advisory went in vain.
While the market has been abuzz with imminent ban of the Rs 2,000 denomination it got fresh fuel after former Economic Affairs Secretary SC Garg wrote in a policy prescription that people may have hoarded black money in the new currency.
He also said that high-value notes can be demonetised without causing any disruption.
"A good chunk of Rs 2,000 notes are actually not in circulation, having been hoarded. Rs 2,000 note, therefore, is not presently working as a currency of transaction," Garg had said.
"A simple method, depositing these notes in the bank accounts (no counter replacement), can be used in managing the process," the former bureaucrat said in a 72-page policy suggestion.
As per his estimate, the Rs 2,000 banknotes account for about one-third of currency notes in circulation in value terms.
The Rs 2,000 notes were circulated by RBI in November, 2016 after demonetisation of Rs 500 and Rs 1,000 notes.