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.

UPDATES ON SEPT 2 2008

SEPT 2 TUESDAY

Dollar Rises to Six-Month High Against Euro as Oil Price Drops .

The dollar rose to its highest since February against the euro

on speculation oil prices near a four- month low will support

economic growth in the U.S., the world's largest energy

consumer.

The U.S. currency advanced to its strongest level in more than

two years versus the British pound as Hurricane Gustav

weakened before making landfall in Louisiana. Australia's

dollar slid to its lowest level in almost a year as economists

predict the country's central bank will lower interest rates

today for the first time since 2001.

Crude oil for October delivery fell as much as 4.2 percent to

$110.60 a barrel, the lowest since May 1. The euro-dollar

exchange rate and oil had a correlation of 0.9 in the past

year, according to Bloomberg calculations. A reading of 1

would mean they moved in lockstep.

The yen rose to 91.39 versus the Australian dollar, the

strongest in five months, on speculation an interest rate

cut from Australia's central bank will prompt traders to

pare holdings of higher-yielding assets funded with Japan's

currency. The yen also gained to a three-week high of

74.69 versus the New Zealand dollar and to 192.68 against

the pound, the strongest since March 17.

U.K mortgage approvals dropped to the lowest level in nine

years and manufacturing contracted, data showed yesterday,

adding to evidence of a looming recession.

The Bank of England will keep interest rates unchanged at 5

percent on Sept. 4, according to a Bloomberg News survey of

economists. Traders are paring bets on higher borrowing

costs in the U.K. The implied yield on the March short-

sterling futures contract fell to 5.06 percent yesterday

from 5.5 percent at the start of August.