Evening Report-Feb 23.

Rupee Market remained closed .The dollar declined for a third day , the longest losing streak this year, as stocks rose and Treasuries fell after the Wall Street Journal cited unidentified people as saying the U.S. may raise its holding in Citigroup Inc The U.S. government may end up holding as much as 40 percent of Citigroup’s common stock, while bank executives prefer the stake to be closer to 25 percent. The dollar and the yen fell against the Euro on speculation the U.S. government will increase its stakes in domestic banks to shore up the financial system, damping demand for the currencies as a refuge.The Euro pared gains against the dollar after European Central Bank President Trichet said credit flows in the Euro region are starting to decline. The financial system remains under "severe strain," which is hampering an economic recovery .The yen fell to a five-week low against the Euro before a government report this week that economists say will show Japan posted a trade deficit for a fourth straight month. "Japan’s trade balance is worsening, so the yen is losing some of its safe-haven status," . Currency headed for its worst month against the dollar since April after government reports showed Japan is sinking deeper into recession, with fourth-quarter gross domestic product contracting at an annual rate of 12.7 percent, the most since the 1974 oil shock. The pound rose to the highest level in almost two weeks against the dollar on speculation banks are stepping up efforts to shore up their finances. The pound also rose against the yen and the Euro after a person familiar with the matter said Royal Bank of Scotland Group Plc plans to cut costs by more than 1 billion pounds ($1.44 billion) and the Wall Street Journal reported the U.S. may raise its holding in Citigroup Inc. U.K. government bonds fell as the FTSE Index jumped 1.1 percent.