Lower US yields and stronger risk appetite have driven the USD lower across the board. AUDUSD has rallied to 0.9373, EURUSD is up at 1.3792, having briefly traded above 1.38 while USDJPY is at 101.97 after bouncing off of 101.5.The KRW has outperformed among EM Asia currencies, rallying 1% against the dollar to 1042.5, followed by a 0.5% rally in the TWD to 30.087 to the dollar. USDCNY fixed 37pips lower to 6.149, less than the move implied by the broad weakening in the USD overnight and we believe the PBoC intervened to support USDCNY from 6.1850 up to 6.1945. We understand that the Bank of Korea also intervened to manage the pace of the fall in USDKRW.
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Credit Suisse