Evening Report-Feb 11.

The rupee dropped tracking the dollar's strength against other major currencies overseas and losses in regional stock markets and closed at $48.69/70.U.S dollar seemed to gain against major currencies.U.S. Treasury Secretary Tim Geithner failed to inspire confidence when he unveiled the details of the banking plan. The lack of detail and specific action left traders concerned that the government still lacks a plan to deal with the toxic assets that have plagued the financial system. Meanwhile, the U.S. trade balance is due to cross the wires and is expected to show the deficit shrink as U.S. demand continues to falter.The Euro failed to break above resistance at 1.3000 during overnight trading after it erased most of its losses from yesterday. The single currency appreciation came despite German inflation dropping to the lowest level in almost five years at 0.9%. The ECB has remains staunch in its stance that deflation isn’t a concern. However, disinflation is enough of a concern to cause the central bank to lower interest rates at its March meeting. This was supported by comment from ECB member Gonzalez-Paramo who said in an interview with Intereconomia radio. The Pound reversed earlier gains from a better than expected employment report as the BoE signaled more rate cuts in its quarterly report as it lowered its forecast for growth and inflation as the country is in a "deep recession" . The Sterling had rallied when jobless claims printed at 73,800 which were below economist’s forecasts of 89,000. However, that was quickly negated by Governor King’s prediction that employment would fall sharply in 2009, when unemployment is already at a 10 year high of 6.3%. the Japanese yen rose to a 6-day high against its US and UK counterparts on concern that the new U.S. bank bailout plan would not be sufficient to ease the ongoing financial turmoil, which increased the appeal of the Japanese currency as the safe-haven