The Indian rupee on Friday surged by 26 paise to end at 71.32 against the US dollar, buoyed by the Economic Survey projecting a revival in economic growth next fiscal.
At the interbank foreign exchange market, the local currency opened at 71.46. During the day, it saw a high of 71.28 and a low of 71.52. The domestic unit finally settled at 71.32, up 26 paise over its previous close.
The rupee had settled at 71.58 against the American currency on Thursday.
The Economic Survey 2019-20 has pegged GDP to grow at 6-6.5 per cent in 2020-21, up from 5 per cent in the current fiscal.
Meanwhile, the global crude benchmark Brent futures rose 0.69 per cent to trade at USD 58.69 per barrel.
However, crude prices had seen some moderation in the past few sessions over demand slump amid rising coronavirus cases in China and other regions.
"Brent crude continued to remain under pressure and trades around five month low. Lower crude is supporting Indian rupee to cap its losses against the dollar," said V K Sharma, Head PCG and Capital Markets Strategy, HDFC Securities.
After the Economic Survey, all eyes will be on Saturday's Union Budget, which is expected to set the tone for the forex as well as stock market going ahead.
Jateen Trivedi, Senior Research Analyst (Commodity & Currency) at LKP Securities, said, "Rupee started the day on strong note near 71.45, and continued its strength towards 71.32 on back of Economic survey projections of 6-6.5 per cent growth rate in coming fiscal year where as FY20 GDP seen at 5 per cent. Global market face uncertainly over China's Corono virus which can lead to slowdown."
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