The 10-year government bond yield was at 6.41 per cent in morning trade.
The rupee rose as much as 25 paise - or 0.35 per cent - against the dollar on Friday.
Analysts say gains in domestic equities amid reports of a meeting between foreign investors and finance ministry officials regarding higher tax surcharge during the day provided support to the local currency.
At the forex market, the rupee opened higher for second straight day at 70.54 against the US currency and climbed to 70.44 at the day's highest point by afternoon, against Thursday's close of 70.69.
At 11:49 pm, it was trading at 70.49 against the greenback.
Here are 10 things to know about rupee's movement today:The government is likely to exempt foreign portfolio investors (FPIs) from an increase in taxes in this year's Budget approved by Parliament, officials were quoted as saying by news agency Reuters.
This supported the domestic unit, say analysts.Domestic stock markets registered a surge on Friday.
The S-P BSE Sensex gained over 400 points at day's high and the broader NSE Nifty benchmark traded above 11,160.According to analysts, rupee may see some mean reversion ahead of weekly close in rupee.
"Price action could remain sideways until 71.05 gets taken out," forex advisory firm IFA Global said in a note."Next week is a truncated one and trading activity is likely to be light," it said.
Forex markets will remain shut on August 15 on account of Independence Day.Foreign institutional investors (FIIs) remained net sellers in the capital markets, pulling out Rs 437.39 crore on Thursday, according to provisional exchange data.Brent crude futures, the global oil benchmark, fell 0.26 per cent to trade at $57.23 per barrel.The dollar index, which gauges the greenback's strength against a basket of six currencies, fell 0.06 per cent to 97.55.The 10-year government bond yield was at 6.41 per cent in morning trade.On Thursday, the RBI's Monetary Policy Committee (MPC) cut the repo rate - the key interest rate at which it lends short-term funds to commercial banks - by 35 basis points to a nine-year low of 5.40 per cent.It also lowered its economic growth forecast to 6.9 per cent from 7 per cent for the current fiscal year, and said it sees inflation remaining inside its target range over a 12-month horizon.Get Breaking news, live coverage, and Latest News from India and around the world on TheIndianSubcontinent.com.
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