EVENING REPORT-AUG 28.

Rupee was slightly weak but moved in a narrow range against the U.S. unit as dollar supplies from exporters offset demand. The market is very quiet today. Demand from importers matched supplies from exporters. However, banks avoided building overly long dollar positions expecting dollar sales from state-run banks, presumably on behalf of Reserve Bank of India. US economic docket is scheduled to show an upward revision to GDP, which may spur bullish sentiment for the US dollar. Second quarter growth figures are expected to be revised higher to 2.8% from an advanced reading of 1.9% as a result of the fiscal stimulus plan initiated earlier in the year. Strong growth numbers should help to ease recessionary concerns for the world’s largest economy, and may fuel expectations for the Fed to hike the benchmark interest rate later in the year .British pound remained weak after the U.K. CBI Trade Report crossed the wires worse than expected, falling to a new record low of -46 from -36 in July. A breakdown of the survey showed that orders decline to -56 from -37 , while the sales component slid to -43, Mounting downside growth risks which may push the Bank of England to cut the interest rate ahead of schedule as the economy is on the brink of a recession. Euro continued to strengthen as employment conditions improved in Germany. Unemployment fell to 7.6% from 7.8% in July, while the ILO unemployment index slipped to 7.3% from a revised 7.4% reading in June. Both figures crossed the wires much better than what market participants were anticipating, helping to fuel bullish sentiment for the Euro. U.S dollar fell against Japanese Yen on expectation of a Hawkish Outlook from BoJ. Australian dollar jumped against its most major counterparts after a report showed that Australia's business investment increased more than expected in the second quarter of 2008.
.