Rupee closes stronger The rupee closed stronger on Tuesday at 47.9650/9700 from its previous close of 47.97/98.It traded in a narrow band throughout the day from lack of persistent demand from corporates. Further, consistent supplies split from Monday saw the rupee appreciate further from Monday's close. Moreover banks were seen selling dollars for the weekend swap difference typical of Wednesday, as Mumbai markets remain closed on Friday for Guru Nanak Jayanti. The benchmark 6-month premium remained steady and closed marginally higher at 6.24%. Announcement of MSCI reweighting of stocks saw the Sensex give away its earlier gains closing 35 points lower at 3288. Dollar loses ground on weak US consumer confidence The dollar slid against the major currencies as the US Conference Board's consumer confidence index fell unexpectedly to 82.2 in November from 85.3 in October. This has been the 5th consecutive decline, which has created doubts over the speedy recovery of the US economy and has enhanced the possibility of a further rate cut. Dollar/yen fell from 124.50 levels to an intraday low of 123.67. Meanwhile, the euro exploited the weak US data and moved higher to 88.30, which makes a near full cent gain from its, 3-1/2 months lows last week. Sterling also recovered smartly by almost 1 full cent from the intraday low of 1.4057 seen in European trading ahead of BOE Governor's parliamentary testimony. Despite MSCI's higher weighting for US equities in its global indices effective November 30, the Dow Jones index fell 110 points to close at 9873.

Interbank Indian Rupee Markets Rupees per dollars Spot 1 Month 3 months 6 months 12 months Bank Sells at 47.9950 48.2312 48.7293 49.4963 50.8238 Bank Buys at 47.9850 48.2012 48.6993 49.4663 50.7938

FxForwards Percentages   1 Month 3 Months 6 Months 12 Months USD Libor 2.11 2.17 2.24 2.71 Forward Premium 5.66 6.04 6.22 5.87 Implied Deposit 7.77 8.20 8.46 8.58 Sovereign Zero Coupon 6.88 6.91 6.93 6.95 Arbitrage -0.89 -1.30 -1.52 -1.63

Source: Mecklai Financial Services

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