USDKRW: BoK (bank of Korea) has hiked 25bps in its interest rate as anticipated in November with the hike characterized as a one-off dovish hike by markets. 3Q GDP and Sep industrial production readings came in lower than expected. Nov CPI prints also in-line to softer. KTB and NDIRS yields continue deflating.
USDSGD: MAS steepens the NEER’s slope again in October. With the NEER remains near its upper boundary, expect declines in the pair to track downside in the broad USD, and not as a result of explicit SGD strength. 3Q GDP numbers disappoint.
USDINR: The Reserve Bank of India (RBI) held benchmark interest rate unchanged at 6.50% and maintained its “calibrated tightening” stance as expected. All six members voted for a rate pause. Further, RBI revised down the inflation forecast for fiscal year (FY) H2 2019 to 2.7-3.2% from 3.9 -4.5%. Looking ahead, we expect RBI to maintain its policy stance and keep policy rate on hold into H1 2019. Given the upcoming federal election in April-May 2019, it is difficult to see RBI raising rates. Further, the central bank will continue to be data-dependent and monitor inflation closely. On FX, INR held up well against a stronger USD yesterday. The near-term focus for USDINR continues to be on the price of oil.
Currency Strength Index: FxWirePro's hourly USD spot index is inching towards -46 levels (which is bearish), while articulating (at 14:09 GMT).
For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex


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