Among the G10, the JPY outperformed, rallying to 117.43 vs. the USD. EURUSD was flat at 1.2459 and AUDUSD is slightly lower at 0.8232. The Asian high yielders remained the big movers in FX. USDIDR spot traded a high of 12,938 with the one-month NDF trading 13,223 at one point. We believe Bank Indonesia intervened in both FX and bonds today. Similarly, USDINR gapped up to 63.24 on the open and has risen further to 63.41. We think India’s central bank has intervened, but only modestly. Adding to the appearance that much of this move is about year-end position management, USDKRW traded down to 1090.95, its lowest level since early November. This kept JPYKRW essentially flat. USDCNY fixed 30pips higher to 6.1182.
Read the full report: Market Research