Evening report-jul 25.

Rupee weakend mirroring the greenback's appreciation in the spot market as local shares declined.There was some amount of buying here as greenback has risen against the India Unit. U.S.Dollar retreated from a two-week high versus a basket of major currencies , knocked by weaker-than-expected U.S. housing and jobs data, lower equity markets and higher oil prices.EURUSD stabilized and regained its footing as German import prices rose 8.9% on the back of higher energy costs.Meanwhile, the M3 money supply in July fell to 9.5% from 10.4% due to slowing growth. As growth declines the ECB will be hard pressed to raise rate further. GBPUSD roared back trading above 1.9950 as U.K. economic growth slowed to 1.6% , which was the slowest pace since 2001. Gross domestic product rose 0.2% , as the housing slump and fall out from the subprime crisis saw construction, manufacturing and financial services fall. The economy is steadily approaching a recession as overall production fell 0.5% in the second quarter. Slow growth and rising inflation is expected to leave the BoE on Hold. USDJPY surprised to the upside as Japanese inflation rose to 2.0% , on soaring gas and food prices. The higher costs are curbing consumer and business spending is impacting growth. Although prices are near the higher end of the BoJ’s target band, the central bank will most likely leave rates unchanged as the country heads towards a recession