EVENING REPORT-SEP 09.

The rupee fell to near two-year lows tracking weaker regional currencies while lower shares triggered concern about further foreign fund outflows.US dollar Jumps To New Multi-Month Highs against the majors .US July pending home sales and the wholesale inventories report are the major economic releases expected in the New York.The euro snapped eight days of declines against the dollar and rose even as German trade surplus narrowed more than expected in August as exports declined while imports recorded strong increase.Fading demands paired with stalled growth has certainly taken a toll on Europe’s largest economy, and may lead the ECB to lower the benchmark interest rate ahead of schedule as the growth outlook turns bleak Pound Finds Support even as The growth outlook for the economy remains bleak as manufacturing activity fell for the fifth consecutive month to its lowest level in more than a year. Manufacturing production dipped to -1.4% in July, while industrial production slipped to a three year low of -1.9%. Higher input costs paired with slowing demands from the global economy has clearly weighed on the U.K. economy, and conditions may only get worse as Europe’s second largest economy is on the brink of a recession.yen surged broadly on a flight to safety as investors concluded U.S. action to save two top mortgage agencies did not alter fundamentals.Australian dollar showed weakness against its major counterparts following the release of several lackluster economic reports including flat Australian retail sales, negative business confidence figures and a lower-than-expected decrease in home loans.