EVENING REPORT-MAR 20.

Rupee ends at 50.68 levels. Dollar/rupee rate in the non-deliverable forwards market plunged as traders sold the greenback noting its sharp fall against most Asian currenciesAn empty U.S. economic docket could leave the dollar at the mercy of the current bearish sentiment and the broader macro themes. The greenback continues to get punished as the Fed’s printing of money has caused it to lose its favor as a safe-haven. Chairman Ben Bernanke speaking in Phoenix today could impact risk sentiment of the central bank leader paints a dour or positive outlook for the U.S. economy. However, the remarks may have little impact on the dollar given the current momentum. Equity markets were flat in Europe and U.S. futures are pointing toward a lower open which could add some support for the dollar. Euro reached as high as 1.3728 in overnight trading as it bounced from an intraday low of 1.3615 at the start of the European session.. Euro-zone industrial production in February fell by 17.3% from a year ago which was a record amount. Activity dropped for a fifth consecutive month as a 6.0% declined in capital goods dragged the monthly reading lower by 3.5%. The dour fundamental data has started to weigh on the Euro as it lost 50 bps following the release. The recession in the Euro-zone continues to show signs of deepening, and with other central banks continuing to be aggressive with bringing their interest rates near zero and embarking on quantitative easing, many are calling for more action from European policy makers. The ECB was on the wires today with a "no comment" on whether a rescue plan was in place to prevent currency bloc members from going bankrupt. The statement came in response to remarks from German politician Otto Bernhardt, who stated in an interview that "there is a plan" and "we won’t let anyone go bust". Pound jumped over a 100 bps to 1.4591 when European markets open as volatility picked up after closed Japanese markets led to low volume during the Asian session. We have started to see Sterling give back some of those gains as concerns grow that the U.K.’s recession may deepen further. Indeed, the BoE chief economist Spencer Dale stated that a more prolonged downturn could not be ruled out despite "A substantial amount of the total contraction we're going to see has come through." He would go on to say that if inflationary pressure resumed that the central bank would need to reverse current quantitative easing efforts. Overall the interview was bullish with the country’s chief economist calling for a return to growth by the end if 2009 which was a source of earlier sterling gains. Japanese Yen has risen from 94.49 to 95.70