INR unsettled ahead of RBI.........>

EMERGING MARKETS: INR unsettled ahead of RBI decision

-Spot INR was one of the poorest across Asia-Pac markets Tuesday and will likely

garner further focus ahead of the RBI decision due on Friday. Indian equities,

bonds and currency markets were unsettled Tuesday on reports that the RBI had

limited withdrawals from a Mumbai-based bank. This prompted a statement from the

RBI in an attempt to assure the country that the "Indian banking system is safe

and stable and there is no need to panic on the basis of such rumours." Further

comments are likely at Friday's rate decision, where the bank are seen easing

policy further.

-USD/ZAR's uptick extended further early Tuesday, with a much

poorer-than-expected ABSA Manufacturing PMI release largely responsible. The

figure, at 41.6, was the lowest reading since 2009, signalling further pressure

on the ANC as they discuss economic reforms and proposed reforms to boost growth

and lower unemployment. Bulls retain sights on the YTD highs at 15.4995.

-Hong Kong retail sales data, minutes from the Bank of Thailand rate decision

and the Polish central bank decision are all due Wednesday.