EVENING REPORT-MAY26.

Rupee slipped, erasing gains, against dollar as banks continuously bought the greenback.However exporters' dollar sales restricted a sharp fall in the Indian unit. Most other banks were also said to have squared off dollar positions amid lack of cues from overseas markets.The dollar held its ground taking advantage of the ultra-thin volumes owing to U.S. and UK market holidays to arrest its decline of the last three weeks and eke out slender gains against a basket of major currencies. European currency showed mixed performance against its major counterparts due to holiday in the U.S. and Britain but held most of the gains it made amid rising oil prices at the end of last week,the euro zone's economy is seen as more resilient to sky-high oil than the U.S. economy.The dollar edged up against the yen but its gains were limited because of sluggish global stocks and skyrocketing oil prices which compounded inflation fears.Australian dollar climbed to 25-year highs against the US currency as higher returns on local assets lured investors and firm commodities added to the run.