Evening Report- Aug 05.

The rupee gained and closed at 42.24 , drop in global oil prices to near three-month lows helped to ease some worries of a wider trade deficit, but see-sawing stocks curbed sharp gains.US dollar rose to a seven-week high against a basket of major currencies, drawing support from a sharp drop in oil prices that had also pushed the aussie down to a four-month low.The Euro fell below 1.5470 hit by a bigger-than-expected fall in euro zone retail sales and succumbing to the dollar's broad rise on softer oil prices before an interest rate decision by the Federal ReserveSterling hit a 1-1/2-month low of 1.9520 against the dollar as investors continued to shun the currency on the view that Britain's economy is deteriorating, while awaiting this week's decision on British interest rates.Manufacturing and industrial output showed falls during June, causing investors to bet second quarter gross domestic product could be revised down..Dollar-yen slipped to 107.68,General demand for the greenback, in tandem with a weaker oil price then provided support, taking the pair back to 108.00 levels.Australian dollar fell below 0.9150 and was among the weakest performers after the Reserve Bank of Australia kept interest rates at 7.25 percent but sent a strong signal that it will ease policy soon to mitigate the effects of slowing demand