June 14th, 2008

KRW: BoK sold $1.5bio USD to 1024, s/l triggered below 1030; BoK capping to fight inflation and appease striking labourers
CNY: CP set below 6.90 for the first time; NDFs didnt follow too much
PHP: Massive long liquidation pushed swap points down across curve, unemployment up to 8.0% in April from 7.4%

"Political tea leaves are larger than others. They are a more potent bew and they leave an unmistakeable mark in the "cup" that is the domestic economy"

Singapore
Pair collapsed on weaker USD, expect support around 1.3650 where NEER will be at 2%
Singtel looking to invest in China telecom market;
NoDX terrible, fell the most in 17 months, down 10.5%

Thailand
Selling pressure in late session, offshore curve collapsed, onshore names still buying spot

South Africa
CBS (Central Bank of Swaziland) wont take its cue from SARB and stayed at 11.5%
- in the past SA, Lesotho, Swaziland, and Namibia all took cues from the SARB
- smaller economies dependent on SA, and have fixed=parity to ZAR
- Bank of Namibia deviated in Dec '07 and Apr '08
c/a deficit figures out on Thursday; expectation had been 8.4%, worst ever recorded but Mboweni saying 9%
- no long term funding coming in
NERSA decision and retail sales
- no way will be granted 60% tariff hike, but more likely a 30% increase over 4 to 5yr horizon
market now pricing in 50bp in Aug and another 50bp in Dec
- 8.1700 move hgh; key longer term resistance at 8.25