Evening Report-Mar 05.

Indian Rupee came off day's lows and closed at 51.76 after testing resitance level of 52.08 as state-run banks sold dollars likely on behalf of the central bank as losses in shares and higher offshore forwards tried to push to unit towards record lows.The wholesale price index rose 3.03 percent in the 12 months to Feb. 21, below the previous week's annual rise of 3.36 percent.Reserve Bank of India cut its short-term lending and borrowing rates by 50 basis points saying growth had been hit more than expected by the global financial crisis and downturn.Euro is seen on a bearish note as Euro-Zone Q4 GDP was confirmed at -1.5% q/q, in line with the preliminary number. The annual rate was revised down to -1.3% from -1.2% y/y reported initially. The breakdown showed contraction across the board, including government consumption, which declined 0.6%. The latter is a bit of a surprise considering the pressure governments are under to support the economy. Private consumption declined 0.9% q/q and investment 2.7% q/q. Exports fell 7.3% q/q and imports 5.5%, with net exports detracting 0.9% points from the quarterly growth rate. Only a 0.6% points contribution from inventories prevented an even sharper decline in overall economic activity. Q4 data are too backward looking to change the growth and interest rate outlook, but with survey data pointing to another contraction in GDP in Q1 data will back arguments for a sizable rate cut at today's council meeting.European Central Bank is expected to cut interest rate to an all-time low of 1.5% from 2.00% to bolster the ailing euro-zone economy. U.K. Pound climbed against the dollar for a third day on speculation the Bank of England will make the last of a series of cuts to its benchmark interest rate today while the European Central Bank signals further reductions. The Monetary Policy Committee of the Bank of England is widely anticipated to cut interest rates to near zero and announce non-conventional measures to improve liquidity.Yen dropped against its major counterparts and approached near 100 level against the dollar as the stock markets across the Asian region were trading higher buoyed by hopes of an additional Chinese stimulus package.Currency is also under pressure as a government report showed today that the fourth quarter business investment in Japan decreased by 17.3 percent from the same period a year ago. The decline was the largest on record, and marked the seventh straight quarter of lower Capital Expenditure. Capital expending excluding software declined 18.1 percent, also the seventh straight decline.