evening report-may 16

The US dollar climbed to fresh multi-month of 42.93 against the Indian rupee as the wholesale price index based inflation soared to 7.83% for the week andon on continuous dollar sales from banks and exporters .Dollar softened against other currencies as economic data before the weekend are expected to confirm that U.S. households are becoming increasingly pessimistic.The greenback, which was hurt on Thursday by weak manufacturing activity indicators, is expected to be hit again by another drop in the University of Michigan consumer confidence index. Euro traded in green pressured by the contrast the weak U.S. jobs and manufacturing data and forecast-beating growth figures from the euro zone.The U.S. data injected a hint of doubt into market expectations that the Federal Reserve's aggressive cycle of interest rate cuts is over. Further clues on the depth of the U.S. economic slowdown will come with housing starts and building permits numbers Yen rose across the board on Thursday as investors reduced demand for riskier assets such as stocks after a series of weak U.S. economic data added to anxiety over the country's growth picture.Analysts said that while market indicators pointed to the Federal Reserve being close to the end of its interest rate cutting cycle, there were nagging doubts on whether the economy would be able to cope without further policy easing.
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