TRY goes from strength to..........>

EMERGING MARKETS: TRY goes from strength to strength

-TRY rallied further still Wednesday, hitting multi-month highs against the

greenback as the close below the 200-dma yesterday spurs further buying the

currency. USD/TRY now sits below psychological support at 5.50, a level last

broken in early April. TRY bulls may also have bought into a new buy

recommendation from SocGen, who see TRY/ZAR benefiting from the global hunt for

yield. The cross has already rallied around 12% since end-July.

-USD/INR hit new multi-month highs ahead of the RBI rate decision, rallying at

the open to touch 71.0350 before markets took profits after a 35bps cut to the

repo rate. Some of the INR strength came as the RBI outlined new measures to

support the shadow lending sector, streamlining the transmission mechanism for

agriculture and helped prop up growth.

-The Thai central bank joined the global chorus of CBs lowering rates, with a

surprise 25bps cut. The decision saw USD/THB hit the week's best levels at

30.88.

-Brazilian retail sales and Chilean trade balance are the calendar highlights.