EVENING REPORT-JUL 25.

Rupee weakened and closed at 42.14 levels against U.S. dollar as banks continued to buy dollars to meet demand from major oil companies. U.S dollar held firm supported by falling oil prices and market talk of possible US interest rate rises.Looking ahead for Weekly Jobless Claims and June Home Sales data.EURUSD declined to 1.5630 levels after July German IFO –business indicator fell to 97.5.Economy continues to show signs of slowing down as the Euro-Zone PMI composite fell to 47.8 . The downside risks of the economy may keep the ECB from another rate hike, especially with oil prices easing.GBPUSD was supported at 1.9830 levls as U.K. retail sales fell 3.9%. The decline was led by a 6.9% drop in apparel purchases as many Britons started buying seasonal items in May due to abnormally warm weather. Food sales also declined 3.6% as costs for basic staples like rice remains at record levels. However, as long as inflation concerns remain the BoE may leave rates unchanged for the remainder of the year.USDJPY was seen flat and took support at 107.60 levels as Japan’s adjusted merchandise trade balance surplus decline to 138.6 billion as exports fell 1.7%. Slowing demand for cars and electronics worldwide saw demand fall to the lowest in more than four years. Rising inflation across Asia is weighing on emerging market demand which has been the source of growth for the country
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