Asia EM FX Awaken As U.S. Tsy Yields Slip

Most currencies from the Asia EM basket garnered some strength amid a downtick in the broader USD strength/U.S. Tsy yields. Better risk appetite lent support to regional FX.

• CNH: Spot USD/CNH slipped into a loss as the greenback faltered along U.S. Tsy yields. The PBOC fix was only marginally firmer than forecast, providing no market impulse on its own.
• KRW: The South Korean won printed its best levels in two weeks, drawing support from better appetite for risk.
• IDR: The rupiah advanced with participants on the lookout for comments from top Indonesian officials, including BI Gov Warjiyo & FinMin Indrawati.
• MYR: The ringgit failed to register gains in sync with its regional peers. Participants assessed Malaysia's Covid-19 situation, as officials expressed willingness to ease restrictions despite rising daily cases.
• PHP: Spot USD/PHP retreated after rejecting key resistance from PHP51.500 on Tuesday. The level has withheld a number of attacks at the start to 2022, becoming a key near-term bullish target.
• THB: The baht caught a bid even as daily Covid-19 caseload hit the highest level since Sep 23. The Bank of Thailand will deliver their monetary policy decision today, but the consensus view is that they will keep the policy rate unchanged.