evening report

RUPEE pared gains as some banks bought dollars for importers. Dollar sales from exporters prevented further rupee fall. Premiums sharply up as US-India rate spread differential widens after RBI repo rate hike Wed. The dollar hit a one-month high versus a basket of major currencies as investors continue to reassess U.S. and Euro zone rate expectations. Euro fell sharply and sentiment were further undermined as France's economy minister Christine Lagarde casted a shadow over expectations for a European Central Bank rate hike in July .Greenback gained considerable ground on the Sterling, rising to 1.9480 as the Inflation expectations in UK rose to a new series high. Yen moved in a very narrow range for the day on speculation that interest rates will be kept unchanged amid concerns that the world's second largest economy is weakening. Aussie weakend on speculation that the weakening labor market may signal that the RBA has tightened enough to cool the economy and would keep rates on hold at their next policy meeting.