April 22nd, 2008

PHP rate decision awaited on Thursday, expected unchanged
SGD lower, BOB sold $200mio with mostly intervention
HKD CPI fell sharply off Feb high, but not comforting; at 4.2% from imported inflation with food, energy + property prices
SGD CPI due tonight; mktexp up from 6.5% in Feb to either 6.8% in bbg or 7.1% in 4cast
- underlying food and fuel continue to surge inflation => tightening at 10Apr MPC, add to domestic inflationary pressure




South Africa
ZAR firmed on bets rising inflation will force CB to raise borrowing costs again;
expectations CPI rose 9.7% in Feb vs. 9.4% in Jan, 12th straight month will exceed 6% ceiling
CB had raised rates to 11.5%, highest in 5 years, on 10Apr, vs. 0.5% in JPY, 2.25% in US, and 2.75% in CHF
"bad news has been priced in so will make gains based on carry advantage"
Chinese ship carrying weapons to Zimbabwe wasnt allowed to port in South Africa
- reports that the ship was going to Angola, an ally of Zimabwe,