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.