Evening report-oct 03.

Indian rupee ended at 47.08 as Oil companies were seen making heavy dollar purchases for the import payments in the light of sliding rupee and global oil prices ruling steady around USD 93 a barrel. Since stocks were negative there is FII outflow from the system and banks also bought the greenback noting the firm non-deliverable forward rates.U.S.Economy will have a day of major event risk with the bill for the rescue plan headed to the House of Representatives where it was initially defeated.Additionally the Non-farm payroll report is expected to show the economy lost another 105,000 jobs and declined for a ninth straight month. The dour report is expected to push voters who are on the fence toward passing the bill that will deliver over $700 bln to the cash starved markets.The employment component of the ISM manufacturing report fell to its lowest level . We may see the dollar weaken on the release as the prospects of the US entering a recession increases. However, the approval of the bailout plan would enhance the outlook as it could potentially lubricate credit markets and ultimately bring an end to the decline of the housing slump. Euro failed to test 1.3800 levels as major event risk looms for the dollar as Eurozone retail sales printed a gain of 3% which was higher than the 1% expected. Also, July’s initially reported decline of 0.4% was revised to a gain of 1% giving hope that the region’s economy may not be declining as fast as expected. Pound has also found some support at 1.7610 levels as the looming event risk has weigh on the dollar despite further evidence that the country may already be in a recession.The Service PMI reading contracted to 46.0 the lowest which is significantly lower than the August reading of 49.2.Japanese Yen had a Choppy trade Ahead OF Bailout Vote and tested a high of 105.50 and was supported at 104.80 levels.