Indian currency gained 3.66% against the US dollar for the week ended Nov 7, 2008, as against the last week’s figure of Rs 49.46.

The Indian rupee surged marginally at the opening of the week, afterward, in the mid week it bounced back from its early losses. While, at the end of the week, it ended on a flat note as compared to its last close on Thursday, Nov 6, 2008.

At the beginning of the week, the partially convertible rupee appreciated to its highest in a fortnight as weakness in dollar assisted outlook for the local unit, whereas positive cues in the local equities re-energized prospects for new capital inflows.

Afterward, Indian currency climbed to its highest single-day gain in more than a decade on the back of gains in local equities, heavy dollar sales by a large corporate and the slackening of long dollar positions by banking institutions.

Rupee closed at 47.69/71 against dollar, 2% stronger than Monday’s close of 48.64/65.

But, in the mid-week, rupee pared gains after touching one-month peak, as heavy losses in the local equities raised fears of more capital outflows, whereas dollars sales by exporters gave some back up. Rupee settled 0.5% stronger at 47.46/50 a dollar than Tuesday’s close of 47.69/70.

Afterward, rupee depreciated as losses in local equities brought up worries for additional fund outflows but dollar sales by some global banking institutions kept Indian currency 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 at 47.65/66 a dollar, almost unchanged from Thursday`s close of 47.66/69.