More muted oil price relieves......>

EMERGING MARKETS: More muted oil price relieves oil importing FX

- Currencies of oil importers were granted some reprieve Tuesday as the oil

price rally moderated. This allowed the likes of KRW, INR, CNH and others to

recover a modest portion of the recent losses, but the over-arching trend is

still cautious.

- ZAR traded defensively despite early outperformance with local names citing

real outflows in South African bond markets as prompting the price action. The

year's USD/ZAR highs at 14.3724 remain in tact, however.

- The THB finished the session at the lows after the Bank of Thailand stated the

central bank will aim to stop any fall through the 30.00 level for USD/THB. This

follows the pair hitting 29.967 on Dec30, the lowest level since mid-2013, which

will likely have frustrated Thai policymakers who have stepped up their verbal

intervention against the currency, adding pressure to the BoT to cut rates in

2020.

- Hungarian industrial production, South African manufacturing PMI, Chilean CPI

and the Polish rate decision take focus Wednesday.