India Morning Call - Global Markets

FOREIGN EXCHANGE

NEW YORK - The U.S. dollar edged lower against the euro on Wednesday after a spike in crude oil prices rekindled worries about the world's largest economy's growth outlook. But the greenback erased earlier losses and rose against the yen amid growing fears that high energy prices could hurt the Japanese economy further. The yen also slipped against the euro.

In afternoon trading in New York, the euro traded 0.2 percent higher at $1.4935 EUR=, Against the Japanese yen, the euro rose 0.5 percent to 163.68 yen EURJPY=. Meanwhile, the dollar index was little changed at 76.199 .DXY. The dollar was up 0.2 percent against the yen at 109.41 yen JPY=.

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TREASURIES

NEW YORK - U.S. Treasury debt prices fell on Wednesday despite falling stocks, with some analysts citing a creeping reemergence of inflation concerns as crude oil rallied on the eve of an inflation report due on Thursday. Renewed weakness in the financial sector, usually enough to spur a bid for safe-haven government debt, failed to inspire any Treasury market gains, as did geopolitical jitters surrounding the conflict between Russia and Georgia.

A report showing U.S. import prices rose 1.7 percent in July and were 21.6 percent higher than a year ago in the biggest 12-month gain in 26 years weighed on bond prices early on Wednesday.

Late Wednesday, the benchmark 10-year Treasury note's price, which moves inversely to its yield, was down 13/32, for a yield of 3.95 percent US10YT=RR, versus 3.90 percent late Tuesday.

The 30-year Treasury bond's price was down 19/32 for a yield of 4.58 percent US30YT=RR, versus 4.54 percent late Tuesday.