SWISS FRANC

The Swiss Currency will continue to gain important support from global credit fears and the pressure to cut carry trads.There is also a possibility of more substantial stresses in global credit market which could put further strong upward pressure on the franc.Domestic conditions remain robust which will underpin the franc,although the National Bank will be more cautious over incresaing interest rate in the current evnironment.Short term franc trends will remain correlated strongly with levels of global risk aversion with underlying fears providing important support.

YEN

The Yen moves are liable to be dominated by degrees of risk aversion in the short term.There will be increasing fears over a glibal credit crunch and this will also increase the threat of a liquidation in carry trades.There will also be the additional risk of capital repartriation back to Japaness Currency.The yen strengthened further to highs near 107.50 last week the strongest level since 2005.

CANADIAN DOLLAR

The canadian Dollar resisted a for ther test af support close to 0.99 last week in subdued trading conditions,but was unable to stregthen back through the 0.98 level.Overall,the canadian Dollar will struggle to make much headway in the short term and there is still the threat of a renewed test of support levels beyond 0.99.

AUSTRALIAN DOLLAR

The Australian Currency is being undermined by elevated levels of risk aversion and a drop in metals prices.The election result will be watched closely over the weekend and could trigger temporary Australion Dollar lisses.Levels of risk aversion are still liable to dominate in the short term and a further deterioration in credit conditions would under mine the Australian Currency.Volatility levels are liable to remain higher in the short term and there is still the risk of a move towards 0.85 next week

POUND STERLING

There will be futher concerns over the U.K financial sector as domestic and global credit conditions continue to tighten.U.K Currency moves will also be-influenced by wider carry trades and the net risks are for a further deterioration in global conditions which will tend to undermine poubd sterling.Pound-Sterling has increased the value of rupee in the open market last week

EURO

Euro-Zone economic fears are liable to increase while pressure for central bank intervention will increase at levels near 1.50 while politied protests against euro strength will increase.Market will want to attack the 1.50 level against the Euro but there will be risk of a futher sharp correction and there are still clear danger in buying the Euro at levels above 1.4850 Euro-has increased the value of rupee in the open-market last week

Report Regarding USD

It has observed that during previous months USD was stable no increase in this Currency althougt other Currencies has rising tendency.

Anyhow in a couple of months USD currency showed sign of increase. In this way our national Currency has also showes a sign of recovery.Because all the trading depends upon USD.But last weak in the Internation market the USD has declined against the yen as Govt.Report showed.