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Just worth reflagging this..............>

DOLLAR-ASIA
DOLLAR-ASIA: Just worth reflagging this point/giving more detail as Europe
starts to file in. Per Yonhap: "The Bank of Korea (BOK) said Wednesday it will
deliver an additional US$1.33 billion to local banks under its bilateral
currency swap arrangement with the U.S. Fed that is designed to help stabilize
the local foreign exchange market. The BOK held its sixth online auction to
provide FX liquidity earlier in the day, but bids undershot the target amount of
$4 billion. The central bank said it will temporarily suspend its online bids,
noting the shortfall in bids may indicate abundant liquidity in the currency
market. "Considering the steady drop in the London Interbank Offered Rates
(LIBOR), a rise in swap rates and foreign exchange savings, the market appears
to remain stable in terms of foreign currency liquidity," the BOK said. "Based
on such an analysis, the BOK plans to halt its online auction for now and
monitor market conditions," it added."
- This is a welcome message for the Asia-Pac region giving the tumult of March.
Of course, the steps implemented by the Fed, USD swap lines usage and CNY
stability helped anchor USD/Asia in April
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com
MNI London Bureau | +44 0203-865-3809 | anthony.barton@marketnews.com

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