Evening report-sep 26.

Rupee fell and closed at 46.55 against the greenback due to month-end dollar demand and sustained capital outflows amid weakening dollar overseas. Dollar dips on US bailout plan uncertainty .US economic fears have been overshadowed by continuing negotiations surrounding the US financial rescue package but still point to a renewed downturn in the economy which will pose dollar risks .Euroand Pound had a rangebound movement .Import prices in Germany slipped 0.8% which was lower than the 1.0% decline anticipated by market participants. However the annual rate continued to hold steady at the record high reading of 9.3% which only supports the ECB’s hawkish bias that upside inflation risks remains high for the economy. . However, ECB voting member Lucas Papademos warned that the financial crisis leaves banks throughout the Euro-Zone more susceptible to shocks and credit risks and went on to say that the economic downturn may last throughout the rest of the year.yen slid as Consumer price growth in Japan slipped to 2.1% from 2.3% but continued to hold above the BoJ’s 2.0% limit for the second consecutive month. Meawhile, the core CPI, which excludes fresh foods, continued to hold steady at the record high reading of 2.4%.