The dollar has softened against the EUR and the JPY and an early sell-off in the AUD has largely reversed. EURUSD is at 1.3738, USDJPY has fallen to 102.20, AUDUSD is at 0.8971 after trading a low of 0.8938, and EURCHF has dipped to 1.2189. In EM Asia, the KRW has underperformed, rising 0.4% against the USD to 1076.18. In contrast, USDIDR has continued to fall, dropping to 11,694. The USDCNY fix rose another 13bps today to 6.1189, its highest level since December 20 last year. With this, the USDCNH – USDCNY basis rose slightly further, but trading in USDCNH has been fairly orderly so far.
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Credit Suisse