July 10th, 2008

KRW market quiet after massive move, BoK sold about 600mio USD at 1003 in spot and sold down NDF from 1005 to 1001

Singapore
Spot traded higher after poor GDP (1.9% vs. 3.1% exp); local names seen selling at 1.3620 level
Any dips in NEER to 1.5% level good time to sell USDSGD

Thailand
Daily funding exceedingly expensive tradng b/w 0.7+ at 1.2
spot supported around 33.60, capped at 33.75


Singapore

South Africa
MTN/Reliance deal very likely will be a share swap so now inflows;
better for ZAR would be if deal fell apart which would actually have a cash suitor
7.65 - 7.78 with risk to the upside
Market coming around to view that August rate hike is far from certain; market now pricing in 60% chance of 50bp