evening report-june04

Rupee pared losses against the greenback on dollar sales from exporters and closed at 42.78 rupees per $1 levels .However, dollar demand from oil companies and other importers kept the Indian unit under pressure. Rupee was stayed weak due to the fall in local shares which prompted some banks to buy dollars for foreign funds. The dollar was supported after Bernanke said interest rates are ``well positioned'' to promote growth and stable prices, signaling the Fed is done cutting borrowing costs. Euro zone retail sales fell 2.9% in April from the previous year. Euro showed mixed trading against its major counterparts. It declined to 1.5417 against the dollar before bouncing back and reached 1.5483 .The results of a key survey indicated that Euro zone services sector registered modest growth in May, as inflationary pressures accelerated in major economies in the region. The yen rose against the dollar as concern that credit-market related losses at banks will widen discouraged investors from buying higher-yielding assets funded with loans in Japan. Pound edged down today as the UK consumer confidence fell to the lowest level since May 2004. The Nationwide Building Society announced today that the consumer sentiment index eased 1 point to 69 in May from 70. The Australian dollar rose from a three-week low today after government data showed the economy grew at twice the pace economists expected last quarter.