MARKET RECAP

Rupee stayed firm on dollar sales from exporters and custodial banks. Marginal rise in local shares lifted the rupee with some foreign banks selling dollars. The US dollar declined against its major counterparts in early deals on , hitting a fresh record low against the euro. Against its other major counterparts, the dollar weakened to new multi-day low during this time period. The US trade balance was less than expected , initial jobless and continuing claims are the major economic events slated for release .The European currency rose to a fresh record high against the pound and the dollar ahead of the interest rates decisions by the European Central Bank and the Bank of England. The ECB is not expected to cut interest rates today or any time soon, given the very high inflation levels. However BOE cuts its main rate by a quarter-percentage point to 5%. The US dollar edged down against the Japanese yen and dollar hit a 9-day low of 100.29 .The pound fell on speculation and Still, declines by the pound may be limited on speculation the U.K. central bank will have to temper the need to stoke growth with curbing inflation, which quickened to the fastest pace in nine months in February.