EVENING REPORT-SEP 05.

Rupee fell to its lowest as a stock market slide triggered concerns of further foreign fund outflows.A widening trade deficit added to funding concernsU.S.Dollar slipped from highs against many major currencies ahead of the August U.S. employment report, while an exodus from riskier bets such as leveraged carry trades amid a sharp fall in stock markets.Dollar's resilience in the face of the plunge in U.S. share prices and continued paring back of rate hike expectations is noteworthy.EURUSD seen mixed though Industrial production in Germany fell more than expected, sliding to -0.6 from a revised reading of 1.5% in June. Production activity declined as durable good orders dropped 6.5% followed by a 3.7% drop in capital goods. The economy outlook for the Euro-Zone has clearly deteriorated, and conditions may only get worse as the global economy weaken.USDJPY strengthened Japanese business investments plunged to -6.5% from -4.9% in the first quarter as firms grappled with higher input costs amid fading demands. The release failed to meet expectations for an improved reading of 0.9%, stoking growth fears for the world’s second largest economy. Capital spending excluding software fell for the fifth consecutive month, slipping to -7.6% in the second quarter. Sterling recovered from a new multi-year low against the dollar as the Bank of England retained its key interest rate at 5% for the fifth straight month as concerns over inflation overshadowed fears of recession