Korean Won's grinding weakness

Aug 11, 2015 05:51 am UTC| Commentary

Korean Won (KRW) is one of the biggest potential losers from continued JPY and CNY weakness, which is expected. South Korea has the highest export correlation and lowest exportcomplementarity with Japan and China. BoK...

BOK's 25 bps cut to be last in the cycle

Aug 11, 2015 05:47 am UTC| Commentary

South Koreas PM Hwang declared a "de facto end" to the outbreak of the Middle East Respiratory Virus (MERS). The outbreak had prompted sharp KRW selling in June on concerns it would exacerbate the downtrend in exports and...

Korean inflation remains below BOK's target

Aug 11, 2015 05:43 am UTC| Commentary

KRW was the worst performing Asian currency in July, dropping by 4.5% against the USD. The domestic data was not all that bad. Rather, the main factor behind KRWs sharp underperformance was technically driven as USD/KRW...

INR a relative outperformer, implementation of the reform agenda crucial

Aug 11, 2015 05:36 am UTC| Commentary

The bigger issue for INR watchers is the progress of structural reform or lack thereof. In early August, PM Modi agreed to drop clauses from the land bill. Theongoing discord in parliament between Modi and the Opposition...

India rupee limited downside in near term

Aug 11, 2015 05:33 am UTC| Commentary

Indian Rupee (INR) was one of the better performers in July with a decline of just 0.83% against the USD. The performance was consistent with our constructive view of INR. Domestic data in the month of July was also, on...

USD/RMB higher, but RMB a regional outperformer

Aug 11, 2015 05:31 am UTC| Commentary

The longer PBC maintains a grip on CNY through stable fixings that do not reflect the macro-fundamentals and/or maintaining the current +/-2% daily onshore spot trading band, the higher the probability growth will slow...

Further easing needed for Chinese Yuan

Aug 11, 2015 05:25 am UTC| Commentary

Recent volatility in Chinese stock markets has had limited impact on CNH vols, reflecting the PBCs relentless grip on the exchange rate through stable daily fixings. Q2 Chinese GDP came in stronger than expected at...