UPDATES

TECHNICALS FOR DECEMBER 15

MCX DECEMBER NATURAL GAS

SHORT TERM : BEARISH

LONG TERM : BEARISH

SUPPORTS : 264, 260, 255

RESISTANCES ; 266, 270, 273

STAY SHORT AT RESISTANCES

UPDATES ON NOV 12 2008

NOV 12 WEDNESDAY

USD / INR : 48.43

INR opened weak and trading above

crucial resistence of Rs 48.20 levels.

If market sustains above these levels it may test

Rs 49 and 49.30.

UPDATES ON NOV 4 2008

NOV 4 TUESDAY

Yen Rises on Speculation Global Rate Cuts May

Curb Carry Trades .

The yen rose against higher-yielding currencies on speculation

a series of global interest-rate cuts will make it less attractive

to buy overseas assets using funds from Japan.

The currency gained against the Australian dollar after the

Reserve Bank of Australia lowered borrowing costs by three

- quarters of a percentage point to 5.25 percent today. It also

advanced versus the euro and the British pound, before

expected rate reductions by the European Central Bank

and the Bank of England this week.

The euro fell for a fourth day against the dollar on speculation

the European Central Bank will lower rates to cushion the

impact of a slowing economy. The ECB will trim its benchmark

rate by half a percentage point to 3.25 percent when it

announces a policy decision on Nov. 6, according to a

Bloomberg survey.

The Bank of England will lower its key interest rate to 4 percen

t from 4.5 percent at a meeting ending Nov. 6, according to

economists surveyed by Bloomberg. The Federal Reserve

reduced its target lending rate by a half-percentage point to

1 percent on Oct. 29. Central banks in China, Taiwan, Hong

Kong, India and the Middle East also cut borrowing costs in

the past week as policy makers race to avert a global recession.

The U.S. economy, the world's biggest, shrank at a 0.3 percent

annual pace in the third quarter and an industry report yesterday

showed manufacturing contracted in October at the fastest rate

in 26 years. In Japan, the world's second-largest economy, the

Nikkei 225 Stock Average last month reached its lowest level

since 1982.

UPDATES ON OCT 31 2008

OCT 31 FRIDAY

Yen Rises After BOJ Lowers Interest Rates by Less

Than Expected .

The yen rose against the dollar after the Bank of Japan

lowered interest rates by less than economists had

forecast.

The yen also gained against the euro after the BOJ lowered\

its benchmark rate to 0.3 percent from 0.5 percent,

compared with forecasts for a cut to 0.25 percent. The

yen slumped the most since 1974 versus the dollar on

Oct. 28 after the Nikkei newspaper said policy makers

were leaning toward lowering rates.

Against the dollar, the yen rose to 97.77 at 2:01 p.m. in

Tokyo from 98.61 yesterday. The yen was at 125.26

versus the euro from 127.31. The euro traded at

$1.2809 from $1.2915. The yen may rise to 90 per

dollar next week, Yoshida said.

UPDATES ON OCT 29 2008

OCT 29 WEDNESDAY

USD / INR expected to trade in the range of

49.48 to 50.10..

INR if strengthens below 49.50 levels , it may

take correction upto 48 to 47.40 levels.

UPDATES ON OCT 24 2008

OCT 24 FRIDAY

USD / INR created a high of of 50.03.

If INR sustains above the crucial 50 level ,

it may test 55 level in the short run .

INR range 50.50 to 49.75.

UPDATES

TECHNICALS FOR OCTOBER 23

USD/ INR 49.77 INR INCHING TOWARDS 50.00

INR EXPECTED TO TRADE IN RANGE 49.3 TO 50.

IF MARKET SUSTAINS ABOVE THESE LEVELS ,

INR MAY TEST RS.55 LEVELS.

UPDATES ON OCT 23 2008

OCT 23 THURSDAY

Euro Falls to Lowest Since 2003 Against Yen as Stocks Plunge .

The euro fell to the lowest level since January 2003 against

the yen as global stocks plunged, encouraging investors to

cut holdings of higher-yielding assets funded in the

Japanese currency.

The 15-nation currency dropped below $1.28 for the first time

since November 2006 yesterday and the British pound

tumbled to a five-year low on bets Europe's central banks

will cut borrowing costs as the global economy heads for a

recession. The Brazilian real and the Russian ruble dropped

against the dollar as speculation Argentina will default

reduced demand for emerging-market assets.

The dollar advanced against 15 of the 16 most-active currencies

on speculation U.S. investors will repatriate funds held in

overseas stocks and bonds on concern the global economy

will slow further.

The Dollar index traded on ICE futures in New York, which

tracks the greenback against the currencies of six major

trading partners, rose to 85.710 from 85.370 yesterday.

It earlier reached 86.070, the highest since October 2006.

UPDATE

TECHNICAL UPDATE FOR OCTOBER 22

USD / INR CMP 49.28.

INR BROKE CRUCIAL RES 49.10, IF MARKET

SUSTAINNA ABOVE THESE LEVELS, IT MAY

TEST 49.60 AND 50 LEVELS.

UPDATE

UPDATE FOR OCTOBER 21

USD / INR CMP 49 ; INR TRADING WEAK, IF SUSTAINS

49 10 , IT MAY TEST 49.60 AND 50 LEVELS . OTHERWISE

48.50 TO 49.50.

UPDATES ON OCT 17 2008

OCT 17 FRIDAY

USD / INR CMP Rs 48.62.

INR opened weak at 48.15 and is expected to trade

in the range of 48 to 48.80.

India inflation is at 11.4 .

All Asian markets opened mixed.

UPDATES ON OCT 16 2008

OCT 16 THURSDAY

USD / INR CMP Rs 48.97.

INR opened weak at 49.04 and is expected to trade

in the range of 48.60 and 49.50.

INR may further weaken upto 50.00 , if INR sustains

above 49.50.

UPDATES ON OCT 15 2008

OCT 15 WEDNESDAY

USD /INR CMP 48.53

INR opened weak at 47.63 an is expected to trade

in the range of 48.80 to 48.30.

Oct 14 Tuesday

Yen Falls Against Euro as Bank Rescue Supports Carry Trades .

The yen fell for a second day against the euro as increased

support for banks by European and the U.S. governments

encouraged investors to add to holdings of high-yielding

assets funded in the Japanese currency.

The yen also slid against the Australian and New Zealand

dollars, two favorites of so-called carry trades, as people

briefed on the U.S. plan said the Treasury will buy stakes

in banks including Citigroup Inc. and JPMorgan Chase &

Co. The euro and the pound rose against the dollar after

European countries committed $1.8 trillion to guarantee

bank loans.

Losses in the dollar accelerated against the euro after the

Fed said yesterday the European Central Bank, the Bank

of England and the Swiss National Bank will offer financial

institutions unlimited funds in the U.S. currency.

Currency strategists and investors say Europe's actions may

not prevent the region's economy from slowing. Morgan Stanley

predicts a decline in the euro to $1.25 by 2009, from $1.3581

yesterday and $1.60 in July, and strategists at BNP Paribas

see weakness after ``some support in the near term.''

UPDATES ON OCT 14 2008

OCT 14 TUESDAY

USD / INR 47.7

INR opened strong at 48,70 and may continue

to trade in the range of 47 to 48.20.

UPDATES ON OCT 13 2008

OCT 13 MONDAY

Euro Rises Most in 3 Weeks as European Leaders Guarantee Banks .

The euro rose the most in three weeks against the dollar

after European leaders agreed to guarantee bank borrowing

and prevent failures that would disrupt credit markets.

The currency advanced versus the greenback, snapping two

days of losses, as leaders of the 15 countries using the euro

meeting in Paris endorsed bailing out ``systemically'' critical

banks in distress. The yen climbed against the dollar as Asian

stocks pared gains, adding to concern that Japanese investors

will sell higher-yielding overseas assets.

The euro fell 15 percent from a record $1.60 in July through last

week as leaders of the nations sharing the currency struggled

to agree on rescuing financial institutions from the credit

seizures that forced Paris- and Brussels-based Dexia SA

and Milan-based UniCredit SpA to raise capital because

of losses.

Futures traders decreased their bets that the euro will decline

against the U.S. dollar.

Technical analysis shows the dollar may decline to 98 yen in

the next few weeks.

UPDATES ON OCT 13 2008

OCT 13 MONDAY

USD / INR opened strong and it is expected to trade

in the range of 47.80 and 48.40.

UPDATES ON OCT 8 2008

OCT 8 WEDNESDAY

USD/INR cmp Rd 47.77.

INR opened weak (48.00) but strengthened in the

early hour of trade.

INR expected to trade in the range of (47.60 -48.20)

UPDATE

UPDATE AT 2 PM PN OCTOBER 7

INR falls to its lowest since DEC 2002 weighed by a

stronger USD overseas and losses in the local stock

market raising concerns on foreign fund outflows.

UPDATE

UPDATE FOR OCTOBER 7

USD/INR : CMP 47.77. INR opened weak 48.00,

but strengthened in early hour of trade. INR expected to trade

in the range 47.60 to 48.20.

UPDATES ON OCT 4 2008

OCT 4 SATURDAY

Dollar Posts Biggest Weekly Gain on Currency Funding Demand .

The dollar posted its biggest weekly advance ever against

the euro on a surge in demand for U.S. currency funding

amid a worldwide credit crunch.

The U.S. currency erased its gain versus the yen on

speculation the $700 billion financial bailout approved by

Congress today won't be an economic cure-all. The yen

dropped against major currencies including the euro and

the New Zealand dollar as approval of the rescue

encouraged investors to borrow in Japan to buy

higher-yielding assets.

The greenback rose 5.6 percent this week versus the euro,

the biggest increase since the 15-nation currency debuted

in 1999. It rose 0.2 percent to $1.3796 at 4:17 p.m. in New

York, from $1.3819 yesterday. The dollar fell 0.1 percent

to 105.19 yen, from 105.33, declining 0.8 percent this week.

The euro dropped 0.3 percent to 145.16 yen, from 145.55.

It fell 6.3 percent this week, the biggest drop ever.

Congress passed a financial-market bailout designed to

unlock credit markets, reversing a rejection by the U.S.

House of Representatives that caused global stocks to

plunge. The bill authorizes the government to buy

troubled assets from financial institutions reeling

from record home foreclosures.

U.S. payrolls shrank by 159,000 last month, following a

revised decline of 73,000 in August, the Labor Department

said today in Washington. It's the biggest loss in jobs since

2003. The unemployment rate stayed at 6.1 percent.

Futures on the Chicago Board of Trade showed an 82

percent chance that the Federal Reserve will cut the 2

percent target lending rate for overnight lending

between banks by a half- percentage point at its

Oct. 29 meeting, with the balance of bets on a reduction

of 0.75 percentage point. Futures showed no chance of

reduced borrowing costs a month ago.

Market Alert on Oct 3 Friday 11.30 AM Indian Standard Time

INR current market price 46.90 may test 47.50

and support 46.40.

UPDATES ON OCT 3 2008

OCT 3 FRIDAY

Dollar Heads for Weekly Loss Versus Yen

Before Payrolls Report .

The dollar headed for a third weekly loss against the yen

before a government report that will probably show a

deepening credit crunch contributed to the biggest drop in

employment in more than five years.

The dollar pared this week's gain versus the euro on

speculation the U.S. economy will weaken regardless of

whether lawmakers pass a bill to buy troubled assets from

banks in a vote today. The euro was set for a record weekly

drop against the greenback after European Central Bank

President Jean-Claude Trichet said yesterday policy

makers discussed cutting the benchmark interest rate

before holding it at 4.25 percent.

For the week, the dollar declined 0.8 percent against the yen.

The euro declined 5.2 percent versus the dollar, the biggest

weekly drops since the 15-nation currency's debut in

January 1999. It fell 5.9 percent against the yen, the

biggest weekly decline since March 2000.

Futures on the Chicago Board of Trade yesterday showed

a 94 percent chance the Fed would cut its 2 percent target

rate for overnight lending between banks by a half-

percentage point on Oct. 29, with the balance of bets

on a quarter-point reduction. Futures showed no

chance of lower rates a month ago.

The U.S. House of Representatives will vote on the latest

version of a $700 billion bank rescue plan at about 12:30

p.m. in Washington. The Senate voted 74-25 on Oct. 1

in favor of legislation that links the rescue of the financial

industry to an increase in bank-deposit insurance limits

and tax breaks after the House rejected an earlier

version of the bill.

The dollar rose against all of the 16 most-active currencies

except the yen yesterday as demand for U.S. currency

funding increased, reflecting the reluctance of banks

to lend.

UPDATES ON OCT3 2008

Market Alert on Oct 3 Friday 10.50 AM Indian Standard Time.

INR falls to a 5 year low in early trade on strong

dollar and weak stock.

UPDATE

UPDATE FOR 1 COTOBER, 2008

USD/ INR CMP : 47.15

INR trading at above crucial resistance, market to weaken

upto 49 to 49.50 levels.

SEPT 30 TUESDAY

Yen Rises Against Euro as U.S. Lawmakers Vote Down Rescue Plan .

The yen rose to its highest in almost two weeks against the

euro on concern U.S. lawmakers' rejection of a $700

billion bank rescue plan will cause credit losses to mount,

curbing demand for higher-yielding assets.

The yen rose to 150.23 per euro at 7:28 a.m. in London from

150.38 yen late yesterday in New York. It earlier reached

148.84, the strongest since Sept. 17. The yen reached

103.54 per dollar, the highest since Sept. 16, before

slipping to 104.35 yen from 104.18 yen. The U.S. currency

may stay between 100 yen and 105 yen this year,

Umemoto said. The euro fell to $1.4395 from $1.4434.

The euro approached a one-week low against the dollar on

speculation other European banks may need a rescue after

Dexia SA and Fortis, the largest Belgian financial-services

company, both received government-sponsored lifelines

this week.

The pound fell after the U.K. Treasury seized Bradford &

Bingley Plc yesterday, the nation's biggest lender to landlords.

The Chicago Board Options Exchange Volatility Index rose

34 percent yesterday to 46.72, eclipsing the previous

closing record of 45.74 in October 1998, when the collapse

of hedge fund Long-Term Capital Management

destabilized markets.

Futures on the Chicago Board of Trade indicated yesterday a

66 percent chance that the Fed would reduce its 2 percent

target lending rate by a half-percentage point by its Oct.

29 meeting, compared with zero odds a week ago. There

was a 34 percent chance policy makers would cut by a

quarter-point.

Declines in the dollar may be limited by speculation investors

will buy the currency as they can't secure dollar funding in

short-term money markets.

The Federal Reserve said yesterday it increased existing

currency swaps with foreign central banks by $330 billion

to $620 billion to make more dollars available worldwide

as losses on mortgage-related securities prompt financial

institutions to hoard cash.

UPDATE

UPDATE FOR 30 SEPTEMBER

USD / CMP ; 46.99

INR Trading at crucial Res : 47.00.

Market to weaken upto 49.50 to 50.00 levels,

if INR sustains above 47 levels.

SEPT 26 FRIDAY

Dollar Falls, Set for Weekly Decline, as U.S. Debates Rescue .

The dollar fell, heading for a second weekly decline against the

yen, as U.S. lawmakers disagreed over a finance industry

rescue plan and Washington Mutual Inc. became the nation's

biggest bank to collapse.

The greenback was on course for a weekly loss against the euro

after a group of Republicans opposed to the Treasury's $700

billion asset-purchase plan entered negotiations with an

alternative proposal. The yen headed for weekly gains

against the Australian and New Zealand dollars as investors

pared so- called carry trades on concern the talks will drag on.

The dollar fell to 105.66 yen as of 2:18 p.m. in Tokyo from

106.56 late yesterday in New York, taking this week's drop

to 1.7 percent. It declined to $1.4637 per euro from $1.4609

yesterday and $1.4466 Sept. 19. The euro bought 154.61 yen,

down 0.7 percent from late yesterday and 0.6 percent for

the week.

The U.S. government closed Seattle-based Washington Mutual,

which faced $19 billion of mortgage-related losses, after customer

withdrew $16.7 billion since Sept. 15, the Office of Thrift

Supervision said in a statement. JPMorgan Chase & Co.,

the third-biggest U.S. bank by assets, agreed to acquire

WaMu's deposits and branches for $1.9 billion.

The collapse of Lehman Brothers Holdings Inc. and the U.S.

government takeover of insurer American International

Group Inc. have helped cause credit markets to seize up.

The three-month London interbank offered rate, or Libor,

for dollars rose to 3.77 percent yesterday, the highest level

relative to the Fed's target rate on record.

Futures contracts on the Chicago Board of Trade showed an 86

percent chance the Fed will cut its 2 percent target rate for

overnight lending between banks by a quarter-percentage

point at its meeting on Oct. 29, compared with zero chance

a month ago.

The dollar has fallen 5.2 percent against the euro since touching

a one-year high of $1.3882 on Sept. 11. The dollar reached

$1.6038 on July 15, the weakest level since the European

currency made its debut in 1999.

UPDATES ON SEPT 26 2008

MARKET UPDATE

US Dollar /NR exp to trade in the range 46.52 to 46.02.

INR opened at the same levels on inflation data which

actual 12.14 % expected 12.23 % prior 12.14 %.

SEPT 25 THURSDAY

Dollar Falls as Traders Bet on Fed Cut, Bush Warns of Recession .

The dollar fell against the euro, ending a two-day gain, as

President George W. Bush warned the U.S. may face a ``

painful'' recession and traders bet on a Federal Reserve

interest-rate cut next month.

The dollar weakened versus the British pound and Swiss

franc before a U.S. government report today that economists

forecast will show home sales declined, extending the worst

housing slump in 17 years. Futures contracts indicate

80 percent odds the Fed will lower borrowing costs in

October as Congress delays a $700 billion bailout

proposal.

The dollar fell to $1.4724 per euro as of 6:35 a.m. in London

from $1.4621 late in New York yesterday.

The odds of the Fed lowering its 2 percent benchmark rate by

a quarter-percentage point at its Oct. 29 policy meeting were

80 percent yesterday, compared with 58 percent on Sept. 23,

futures contracts on the Chicago Board of Trade showed.

The U.S. Dollar Index traded on ICE futures in New York, which

tracks the greenback against the currencies of six major trading

partners, slipped to 76.537 from 76.788 yesterday. It touched

75.890 on Sept. 22, the lowest since Aug. 13.

The dollar dropped versus 13 of the 16 most-active currencies

today. It has fallen 6 percent against the euro since touching a

one-year high of $1.3882 on Sept. 11. The dollar reached

$1.6038 on July 15, the weakest level since the European

currency made its debut in 1999.

UPDATE

CURRENCY UPDATEAT 9.30 AM ON SEPTEMBER 25

USD / INR: CMP Rs.46.17

INR opened weak created a high of 46.35, expected to

remain weak and trade in the range of46.02 to 46.50.

UPDATES ON SEPT 24 2008

SEPT 24 WEDNESDAY

Yen Falls as U.S. Stock Futures Rise on Goldman Fundraising .

The yen declined after the Federal Reserve announced it

extended currency swap agreements and as Goldman Sachs

Group Inc. said it will raise funds, giving investors confidence

to buy higher-yielding assets.

The yen dropped the most this week against the dollar and euro

as U.S. stock futures rose and Asian shares pared losses. Goldman

Sachs secured a $5 billion stock investment from Warren Buffett's

Berkshire Hathaway Inc. The Fed arranged $30 billion in swaps

with central banks in Australia, Denmark, Norway and Sweden

to ease short-term dollar funding. The Australian and

New Zealand currencies weakened as prices for

commodities declined.

In so-called carry trades, investors get funds in a country with low

borrowing costs and invest in another with higher interest rates,

earning the spread between the two. The risk is that currency

market moves can erase those profits.

The Bank of Japan's benchmark rate of 0.5 percent compares

with 4.25 percent in Europe and 2 percent in the U.S.

UPDATES ON SEPT 23 2008

SEPT 23 TUESDAY

Dollar Volatility Rises as Banks May Remain Reluctant to Lend .

Volatility implied by dollar-yen options rose on speculation a

U.S. government plan to buy troubled assets and central

banks' efforts to increase liquidity will fail to stem a

global credit crisis.

The dollar declined to 106.59 yen at 2:58 p.m. in Tokyo from

107.45 yen late in New York on Sept. 19.

Implied volatility for dollar-yen options expiring in one month

rose to 16.41 percent from 16 percent at the end of last week.

The dollar's one-month 25-delta risk-reversal rate against the

yen widened to minus 3.68 percent from minus 3.64 percent on

Sept. 19, indicating a greater premium for dollar puts that allow

sales over dollar calls that grant the right to buy.

U.S. officials devised the bad asset plan after losses on mortgage

-related investments led this month to the bankruptcy of

Lehman Brothers Holdings Inc. and government bailouts f

or American International Group Inc. and mortgage

financiers Freddie Mac and Fannie Mae.

The Federal Reserve led central banks in Europe and Asia in

pouring cash into global financial markets over the past

week due to a crisis of confidence.

UPDATES ON SEPT 22 2008

SEPT 22 MONDY

Dollar Falls on Concern U.S. Bank Bailout Will Strain Finances .

The dollar dropped against the yen for the first time in three

days on concern a U.S. government plan to buy $700 billion

of troubled assets from banks will widen the country's

budget deficit.

The U.S. currency reached a three-week low against the euro

before reports this week that will probably show tighter lending

rules damped U.S. home sales and durable goods orders last month.

The greenback was near a one-month low against the

Swiss franc as two-year Treasury yields fell for the first

time in three days on bets the Federal Reserve will cut

interest rates.

The dollar fell to 106.59 yen as of 1:55 p.m. in Tokyo, from 107.45

in New York late on Sept. 19. The U.S. currency declined to

$1.4563 per euro, the lowest since Sept. 2, and traded at

$1.4489 from $1.4466. The dollar declined to 1.1016 Swiss

francs from 1.1054.

The dollar also fell as two-year Treasury yields dropped 8 basis

points to 2.11 percent on speculation the Fed will cut rates as

soon as next month. Paulson and Bernanke are due to testify

before the Senate tomorrow about the banking crisis.

The chances of the Fed cutting its benchmark 2 percent rate by

a quarter-percentage point at an Oct. 29 policy meeting stood

at 32 percent, up from zero a month ago, futures contracts on

the Chicago Board of Trade show.

In carry trades, investors get funds in a country with low borrowing

costs and invest in another with higher interest rates, earning the

spread between the two. The risk is that currency market

moves can erase those profits.

In carry trades, investors get funds in a country with low borrowing

costs and invest in another with higher interest rates, earning

the spread between the two. The risk is that currency market

moves can erase those profits.

UPDATES ON SEPT 18 2008

SEPT 18 THURSDAY

Dollar Drops for Second Day on Speculation More Banks to Fail .

The dollar declined for a second day against the euro on speculation

a seizure in credit markets will cause more financial institutions to fail.

The currency also fell against the Swiss franc after a record slump

in shares of Goldman Sachs Group Inc. and Morgan Stanley, the

only remaining independent brokerages on Wall Street. The cost

of borrowing in dollars for three months jumped the most since

1999 as a U.S. government takeover of American International

Group Inc. failed to ease concern debt losses will spread.

The U.S. currency fell to $1.4370 per euro as of 6:30 a.m. in

London from $1.4326 late yesterday in New York. The dollar

was little changed at 104.60 yen. It touched 103.54 on Sept. 16,

the weakest since May 27, and Amikura says the currency may

fall to 103.80 yen in the coming days. It declined to 1.0997

Swiss francs from 1.1029. The yen was at 150.34 per

euro from 149.88.

The dollar also fell on concern the credit slump will cool the world's

largest economy. U.S. housing starts fell 6.2 percent in August to

an annual rate of 895,000, the lowest since January 1991, the

Commerce Department said yesterday. Building permits, a

sign of future construction, dropped 8.9 percent to an

854,000 pace.

The Federal Reserve kept its target rate for overnight lending

between banks at 2 percent on Sept. 16, rebuffing calls by some

investors for an interest-rate cut.

The yen jumped 3 percent against the dollar on Sept. 15, the most in

a decade, as Lehman Brothers Holdings Inc. filed for the biggest

bankruptcy in history, sparking a global stock market rout and

a surge in bank loan costs.

UPDATE

UPDATE ON SEPTEMBER 16

The dollar was mixed Tuesday, holding its ground

in the face of mounting financial turmoil as traders

awaited a rate decision by the Federal Reserve's rate-setting

Federal Open Market Committee.

The U.S. currency kept its upward bias after data showing

consumer prices fell 0.1% in August, in line with expectations.

.

The U.S. unit dipped slightly against the euro, which rose to $1.4238,

compared with $1.4190 previously.

Futures traders raised bets the Fed will lower its target interest

rate from 2% when it ends its meeting around 2:15 p.m. Eastern.

Earlier, the greenback tumbled to a four-month low, however, against

a broadly stronger Japanese yen, which continues to gain support as

traders around the world shun risk amid deepening worries over

the financial sector.

The dollar fell to 103.52 yen, before rebounding slightly to trade at

103.78 yen, still down from 104.27 yen Monday in late North American

trade. The euro fell 0.7% against the Japanese currency to 147.90 yen..

Risk aversion remains the primary theme of the foreign-exchange markets.

The yen has benefited in recent weeks as traders abandon once-popular

carry trades that centered on borrowing in low-yielding yen and then

using the proceeds to buy assets denominated in higher-yielding assets,

particularly Australian and New Zealand dollars.

UPDATES ON SEPT 16 2008

SEPT 16 TUESDAY

Asian Stocks, U.S. Dollar Drop, Treasuries Gain, on Lehman, AIG .

Asian stocks plunged the most in eight months, the dollar fell

and Treasuries rose as debt rating downgrades threatened

American International Group Inc.'s efforts to survive a

credit-market slump.

Oil fell to a seven-month low and the cost to protect corporate

bonds from default surged on concern the credit turmoil will

tip the global economy into a recession. The won slumped 4.6

percent to 1,160 per dollar, leading declines in emerging-

market currencies.

Markets in Japan, China, Hong Kong and South Korea were

shut for public holidays yesterday, giving investors their

first opportunity to react to the bankruptcy filing by Lehman,

the fourth-largest U.S. investment bank. At least seven

Japanese banks lent the company a total of $1.62 billion,

according to the Chapter 11 filing by Lehman.

Yields on U.S. two-year notes dropped 5 basis points, or 0.05

percentage point, to 1.69 percent, according to bond broker

BGCantor Market Data. Futures contracts on the Chicago

Board of Trade indicate the odds of a quarter-point Fed

rate cut today surged to 68 percent from zero percent a

week ago. Japanese five-year government bond yields

fell 11.5 basis points to 1 percent.

UPDATES ON SEPT 12 2008

SEPT 12 FRIDAY

Euro Trades Near One-Year Low on Speculation Production Shrank .

The euro traded near a one-year low against the dollar on

speculation that a government report will show today industrial

production in Europe shrank, backing the case for the region's

central bank to cut interest rates.

The currency is headed for a third weekly loss as traders

increased bets that the European Central Bank will lower

borrowing costs to support economic growth. The yen was

near a two-year high against the euro on concern that

Lehman Brothers Holdings Inc. may collapse, prompting

sales of higher-yielding assets funded with cheap loans

in Japan.

The euro traded at $1.4003 at 11:35 a.m. in Tokyo after reaching

$1.3882 yesterday, the weakest level since Sept. 18, 2007. It has

fallen 1.9 percent this week. The yen bought 150.15 per euro from

149.98 yesterday, when it touched 147.54, the strongest in more

than two years. It rose 2.4 percent versus the euro this week.

The U.S. currency traded at 107.19 yen from 107.17 yen, and

was set for a 0.5 percent decline this week.

The dollar has gained 12.7 percent since touching the all- time low

of $1.6038 per euro on July 15 as the European economy slumped

and crude oil dropped more than 30 percent to $101.50 a barrel

from its peak of $147.27.

Gains in the dollar may be limited by speculation a Commerce

Department report may show today that U.S. retail sales fell in

August for the first time in six months, adding to signs the

world's largest economy is slowing.