Asian stocks fell today after earnings reports from Japan and South Korea disappointed investors. The euro weakened for a second day as Greece and its creditors struggle to reach an agreement on a debt swap. China’s economy is headed for a “hard landing” this year as weaker demand overseas chokes off exports. The Australian and New Zealand dollars weakened on signs Greece’s government is struggling to reach an accord with its creditors on a debt swap, damping demand for higher-yielding assets. Most U.S. stocks gained as a drop in jobless claims fueled optimism about the economy before today’s employment data. Oil slid to a six-week low as supplies rose. The dollar and Treasuries were little changed Rupee opened at 49.1200/49.1300 against its previous closing of 49.1500/49.1600 and expected to trade in 48.9500/49.2500 range today.
The rupee rose today supported by dollar inflows, although choppy share market and cautious sentiment across world financial markets ahead of key US data capped major gains in the Rupee. Market would remain subdued as the US jobs data are crucial for understanding the global growth trajectory. A good number will trigger a risk rally, while a bad one could push us into a risk situation. Intraday we expect the rupee to trade in the range of 49.00 – 49.20.
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