EVENING REPORT-JUL 16.

Indian rupee ended at 43.08 after global oil prices dropped, easing concerns of a widening trade deficit but worries about rising outflows from local shares was seen limiting gains. Market is probably celebrating the fall in oil prices, but the negative factors like outflows from the stock market and the political uncertainty trimmed gains. The dollar weakened against its major counterparts on fears that the US financial institutions may suffer more losses due to the damage inflicted by the housing market crunch. Adding fuel to the fire, Federal Reserve Chairman Ben Bernanke comments that inflation was likely to move temporarily higher and there is significant downside risk to growth. Euro Slightly Down Against Dollar as German, French and Euro Zone final inflation figures showed no change to the original estimates. Euro zone inflation still stands at a record 4 % .Sterling is weaker after poor UK unemployment figures. Slowing global economy, rising inflation and the worst housing slump since the last recession have led to employers cutting jobs as the growth outlook dims. The BOE has paused their recent easing policy as they try and rein in inflation that has breached the central bank’s 3% threshold .Japanese yen gained against other major currencies and tested offers at 104.06 as fall in stock prices resulted in unwinding of 'carry trade'.