Bad Day At The Office

The greenback rose post-FOMC minutes hitting 2021 highs, pervasive risk off sentiment pressured Asia EM currencies.

• CNH: Offshore yuan is weaker, USD/CNH is up 133 pips, the PBOC fixed USD/CNY at 6.4953, in line with sell side estimates. As a reminder markets look to the PBOC's LPR announcement tomorrow.
• SGD: Singapore dollar is weaker, USD/SGD consolidating further above the 1.36 handle. Singapore today eased work from home rules which means hat around half of those currently WFH will be allowed to return to the office.
• TWD: Taiwan dollar is weaker, USD/TWD approaching the 28.00 handle. Markets look ahead to BOP current account data today, export orders are expected to have risen 21.2% in July, down from a 31.1% rise in June, this would be the sixteenth month of expansion.
• KRW: Won is lower, on the coronavirus front there were 2,152 new cases in the past 24 hours, up from 1,805 yesterday with the long weekend being blamed for increased transmission. Short term external debt rose to $178bn in Q2 from $165.7bn previously.
• MYR: Ringgit declined, the Malaysian King invited lawmakers who support Ismail Sabri Yaakob as the new prime minister to an audience today. Sabri was deputy PM in Muhyiddin's coalition.
• IDR: Rupiah declined, hitting the lowest levels in two weeks. Markets await the Bank Indonesia rate announcement today, the Central Bank is expected to keep rates on hold.
• PHP: Peso is lower, yesterday the government cut its 2021 economic growth forecast to 4-5% from 6-7% previously. Markets await a decision on a two week lockdown extension.
• THB: Baht is weaker, approaching its 2021 low. Thailand reported a record single day coronavirus case tally of 20,515 on Wednesday. Elsewhere the BoT decided fiscal measures would be more effective than a further reduction in the policy rate according to the minutes released yesterday.