June 10th, 2008

KRW: BoK sold at 1031 and again at 1025...market fell to 1021 even with stocks down 2%; hoping FX can curb inflation we see capping at 1035



Hong Kong

USDHKD Bullish momentum on back of stronger USD and concerns about foreign outflows from stock losses

Hang Seng down 4.21%



Thailand

A6 came in and "finished the job" down to 33.00 from high of 33.57



South Africa

More risk of a 50bp hike than market assumes

5 appearances by CB governor in last 2 months

Reasons why it could be 50bp

- 2004 a total surprise where CB talked tough but acted differently (they're paid to talk tough)

- most of comments were made off the cuff, not necessarily representative of committee

- comments came before this weeks poor real economy data and manufavturing data





7.9470, 8.000 7.9135, 7.8500,



Singapore

Rallied on back of weaker EUR and weaker CNY, look for 1.3732 but MAS to smooth out rallies