The Indian rupee closed at 44.45 levels after opened of 44.60 levels.

The Indian
rupee continued to trade weak in the afternoon session today tracking losses in
domestic shares with month-end dollar demand from oil refiners and broad dollar
gains also boosted. The Sensex close 216 points negative today led by losses in
financials, as weak world equities and expiry of monthly derivatives contracts
today. Outflows related to Coal India IPO refund watched in the next week. The
one month NDF is traded at 44.90/95 which is weaker than onshore market rate at
the time of writing.

The US Dollar continued its bullish momentum seen from yesterday, EUR/USD
hitting its lowest point this week at 1.3769 during the day. AUD/USD pair tanked
towards 0.9600, making a low of 0.9677 on the day. USD/JPY is higher also in
this morning but with very good (sizeable) offers noted above 82.00 this pair will
struggle higher and the ultimate point of resistance becomes 82.30 on the day. The
index of the dollar trading at 77.93 against six major currencies was up 0.3
percent. Gold declined for the first time in four days on concern of stronger dollar
curbed demand for the metal as an alternative investment.

Aussie tracked the risk on/risk off change in investor sentiment rallying to 0.9950 highs during the
European session before falling sharply to the lower 0.9800 levels. The outlook is cautious with the
recent large uptrend in Australia stock market rally begins to unravel. Overall the AUD/USD traded with
a low of 0.9822 and a high of 0.9956 before closing the US session at 0.9870.

Gold did well as investors searched for an alternate currency to invest in. Overall trading with a low of
USD$1348 and high of USD $1368 before ending the New York session at USD$1362 an ounce.
Precious metals traded within narrow ranges with a positive tone. Both silver and palladium gained more
than +1%, outperforming slow crawls of gold and platinum .

The Aussie (0.9856) had made a high above 0.9887 levels yesterday .Immediate Support comes at 0.9750(55 Daily
EMA).Exporters are suggested to book partial Nov and Dec months exposure on spike towards 0.99 levels onwards
and Importers can cover their exposure on dips towards 0.9750 or below levels. Medium term: Maintain bullishness.

Gold (1358.08) fell to the lows of 1348 levels and make high of 1368 yesterday, however have gained back some of
its losses this morning. It has been trading flat and is trying to consolidate in a band of 1330 - 1370 levels.
Immediate resistance comes near 1367 levels which once broken should push the yellow metal to 1380 levels.
Buying on dips for target of 1400 is recommended. Medium term: Maintain bullishness.
The Indian rupee closed weaker at 45.57/58 levels after it had opened at 45.54 levels. The
rupee extended its fall to a fresh two-month low at 45.66, led by the dollar's gain versus majors
and on concerns that North Korea and South Korea exchanged artillery fire.
Indian Rupee follows equity market and overseas movement in currencies. The BSE Sensex
closed at 19691, down by 265pts and Nifty closed at 5934, down by 75 pts on news of Korean
and triggering a sell-off from foreign Institutional investors. The one month NDF is traded at
45.84/94 which is weaker than onshore market rate at the time of writing. The dollar index
which weighted against six major currencies was trading at 78.80, up by 0.15%.

Crude traded around $81 per barrel today while Gold (1360.50) was up by 0.20%, led by fears
regarding Ireland’s debt crisis and Investor Prefer safe heaven commodities. Today US home
sales data is a key concern for the US Dollar.
The Indian rupee closed stronger at 45.34-35 levels on a volatile note after it had
opened at 45.52 levels. It had made low of 45.60 levels and had rose to 45.26
levels, tracking gains in domestic share market and dollar's weakness against
majors. RBI keeping key rates unchanged also helped Rupee to appreciate against
dollar.Food price index rose 9.46%, while the fuel price index climbed 10.67% in
the year to Dec. 4, compared to 8.69% and 9.99% respectively in the prior week.
The BSE Sensex closed at 19864 up by 217pts and Nifty closed at 5948, up by
56pts tracking RBI’s decision to keep key interest rates on hold as expected. Also
firm European shares helped today’s gain.
The one month NDF is traded at 45.58/45.68 which is weaker than onshore market
rate at the time of writing. The dollar index was trading at 80.10, down by 0.15%.

The Euro had made a high today at 1.3266 levels on decent demand for the
Spanish bond auction. EU leaders will make progress on tackling Eurozone debt
problems at EU summit today. The Sterling was trading at 1.5610 levels at the
time of writing tracking gains in the euro and Economic data. Gold ($1383.58)
was very range bound today and had made a high of $1386.41 and a low of
$1379.65. Crude ($88.10) was hovering around $88 recording its high at $88.57
and a low at $87.39 after yesterday’s U.S. Crude Oil Inventories were down by
9.9M to 346MB last week.

Gold ($1383.58) was very range bound today and had made a high of $1386.41
and a low of $1379.65 ahead of awaited EU summit two-day meeting which has
been started from today in Brussels. Crude ($88.10) was hovering around $88
recording its high at $88.57 and a low at $87.39 after yesterday’s U.S. Crude Oil
Inventories were down by 9.9M to 346MB last week.
The Sterling was trading at 1.5610 levels at the time of writing tracking gains in
the euro vs. dollar on optimism that EU leaders will make progress on tackling
Eurozone debt problems at EU summit. On the economic front, Retail Sales m/m
was disappointing at 0.3%, compared to previous at 0.7% while Consumer
Inflation Expectations was better at 3.9%, compared to previous at 3.4%. The Euro
had made a high today at 1.3266 levels on decent demand for the Spanish bond
auction, but quickly gave up those gains after Spain had to pay higher costs to sell
10-year and 15-year bonds. The Swiss Franc had strengthened against dollar and
had made a high of 0.9772 after SNB kept key rate near zero at 0.25% in order to
stop Swiss Franc from appreciating

The US Dollar rallied sharply 10 year yield also jumped sharply to an intraday high of 3.563%.(7
months high) Risk appetite was dented early in Europe Session, by Rating agency Moody’s
shook European markets today in announcing that it may look to downgrade Spain’s sovereign
debt rating due to high debt levels and the need to raise significant capital in the year ahead.
Economic data was broadly supportive of US Dollar strength with Consumer Price
Index inflation data

EUR did the reverse, 1 bigi movement in a volatile session.GBP underperformed, falling 200
points , its unemployment rate rising from 7.7% to 7.9%. USD/JPY rose from 83.80 to 84.25.