EFTA Document EFTA01458680

• Most currencies have tracked equity markets tightly in this rebound. Based on simple level correlations between FX and local stocks (Charts 11-16), INR, THB and KRW are trading fair to equities, IDR has overshot and now looks rich versus the JCI, as does PHP, slightly. TWD still looks cheap versus local stocks. • Regressions of FX against key financial variables suggest iDfl and KAW now look rich to undel lying asset market drivers (Chart 17) Indeed, both may soon encounter official b