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ASIA FX: North Asia FX Firmer Against The USD But Away From Best Levels

ASIA FX
BulletEM BulletAPACEmerging Market News

In North East Asia, the USD is weaker but away from worst levels. USD/CNH had a brief dip sub 7.2400, but now sits back close to 7.2500. We are around 0.15% stronger in CNH terms. This is underperforming the 0.50-0.55% fall in the USD indices. Broader USD sentiment faltered from the open as hedge fund manager Scott Bessent was picked by incoming President Trump as his Treasury nomination. Bessent is seen as market friendly and looking to curb fiscal deficits (which would be less reflationary). On tariffs he argued that they can used as a negotiating tool.  

  • The USD/CNY fixing saw the error term stay beyond -500pips and comfortably sub 7.1900. Not helping CNH sentiment is the further losses in onshore equities. The CSI 300 index is down a further 0.60%, following Friday's more than 3% loss. This puts the index back to mid Oct levels. Hong Kong equities are also tracking weaker. Tech earning concerns are a headwind.
  • Spot USD/KRW got to lows of 1395.7, but sits back up at 1399/1400 in latest dealings, around 0.45% stronger in won terms. Local equities have rallied, up over 1%, but sit away from best levels. Offshore investors have been modest buyers of local equities so far today.
  • Spot USD/TWD is back under 32.50, around 0.40% stronger in TWD terms. We remain above recent lows though. (32.39 from last week). 
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In North East Asia, the USD is weaker but away from worst levels. USD/CNH had a brief dip sub 7.2400, but now sits back close to 7.2500. We are around 0.15% stronger in CNH terms. This is underperforming the 0.50-0.55% fall in the USD indices. Broader USD sentiment faltered from the open as hedge fund manager Scott Bessent was picked by incoming President Trump as his Treasury nomination. Bessent is seen as market friendly and looking to curb fiscal deficits (which would be less reflationary). On tariffs he argued that they can used as a negotiating tool.  

  • The USD/CNY fixing saw the error term stay beyond -500pips and comfortably sub 7.1900. Not helping CNH sentiment is the further losses in onshore equities. The CSI 300 index is down a further 0.60%, following Friday's more than 3% loss. This puts the index back to mid Oct levels. Hong Kong equities are also tracking weaker. Tech earning concerns are a headwind.
  • Spot USD/KRW got to lows of 1395.7, but sits back up at 1399/1400 in latest dealings, around 0.45% stronger in won terms. Local equities have rallied, up over 1%, but sit away from best levels. Offshore investors have been modest buyers of local equities so far today.
  • Spot USD/TWD is back under 32.50, around 0.40% stronger in TWD terms. We remain above recent lows though. (32.39 from last week).