Evening report-jul 23.

Rupee ends at 42.08 helped by a firm stock market after the government won the vote of confidence, with lower oil prices also boosting sentiment. The dollar continued to propp up against the counterparts by lower oil prices and renewed speculation about possible U.S. interest rate hikes.Currency received support from the hawkish comments from Plosser cited as key factors that triggered the rebound.The extent of the US slowdown will be reported in today’s Beige BookEURUSD declined to 1.5715 levels as European industrial new orders dropped 3.5% in May, which was twice the estimate. German orders fell for a sixth month as a strong Euro and made exports less competitive. The region continues to show signs of slowing growth, which may keep the ECB on hold.GBPUSD rose to 2.0015 as BoE voted to leave interest rates unchanged . The minutes from the meeting showed that Tim Besley voted for a quarter point rate hike, while dove David Blanchflower called for a rate cut. The majority voted to leave rates unchanged as they see the inflation rising higher than initially expected, while the housing and growth slowdown is becoming more pronounced, signaling that rates may remain unchanged for the remainder of the year. The dollar hit a one-month peak against the yen , buoyed by a sharp slide in oil prices, a recovery in stocks and hawkish rhetoric from U.S. officials.