evening report-may 13

Rupee trimmed losses as some foreign banks were seen taking profits.Dollar demand from importers also thinned reducing the downward pressure on the Indian unit. Local shares were up 0.4% giving rise to views foreign funds may sell dollars.The dollar was trading in narrow ranges against major currencies with investors hesitant to take fresh positions ahead of a series of data this week which would provide further clues on the magnitude of a U.S. economic slowdown.Euro trade in red ahead of the retail sales report as investors were also keeping a close eye on oil price which have eased since hitting a record high above $126 a few days ago.Retail sales figures are expected to have continued their sluggish trend falling by 0.1 percentSterling lost the most ground against the U.S. currency as domestic factors came in to play with housing and retail sales data weighing on sentiment.British consumer price are expected to reflect on the rising inflationary pressures deepening the Bank of England's policy dilemma as it struggles to balance slowing growth with rising inflation.The dollar fell against the Japanese yen trading at 103.70 yen across the board as markets' risk appetite picked up with equities trading higher and bond yields falling. The Australian dollar advanced as rising stocks gave investors confidence to purchase higher- yielding assets.Aussie climbed for a second day versus the U.S. dollar as optimism the worst of the credit crisis is over spurred demand for so-called carry trades