The Indian rupee appreciated 3.66% against the dollar in the week ended Nov. 7, 2008 as compared to the last week`s closing of Rs 49.46 (Friday, October 31), on account of mixed cues. Rupee, appreciated marginally at the beginning of the week, thereafter, in the mid week it recovered from its early losses. Whereas, at the end of the week, rupee closed almost flat from its previous close on Thursday, Nov. 6, 2008.

At the beginning of the week, the partially convertible rupee appreciated to its highest in a fortnight as dollar weakness helped sentiment for the local unit, while positive points in the local equities re-energized expectations for fresh capital inflows. Rupee settled 1.6% stronger at 48.64/65 a dollar.

Thereafter, rupee climbed to its highest single-day gain in more than a decade on account of gains in local equities, heavy dollar sales by a large corporate and the slowing down of long dollar positions by banks. Rupee closed at 47.69/71 against dollar, 2% stronger than Monday`s close of 48.64/65.

However, in the mid-week, rupee pared gains after hitting one-month high, as heavy losses in the local equities raised concerns of more capital outflows, while dollars sales by exporters gave some support. Rupee settled 0.5% stronger at 47.46/50 a dollar than Tuesday`s close of 47.69/70.

After that, rupee depreciated as losses in local equities raised concerns for the further fund outflows but dollar sales by some international banks saved the rupee from falling further. Rupee settled 0.4% weaker to stand at 47.66/69 against the USD.

Finally, at the end of the week, rupee recovered from early losses to end almost unchanged from its previous close as a rally in the local equities encouraged investors to sell dollars at higher levels on expectations of renewed capital inflows. Rupee settled at 47.65/66 a dollar, almost unchanged from Thursday`s close of 47.66/69.

The 30 share index, Sensex rose 176.23 points, or 1.80%, to 9,964.29 in the week ended Nov. 07, 2008. On the other hand, the broad based NSE Nifty climbed 87.4 points, or 3.03%, to 2,973.00 in the same period.