Baht Leads Gains, Yuan Hits Best Levels Since 2018

Further moderation in concern over the Omicron coronavirus variant and the prospect of more supportive measures from China's policymakers underpinned a risk-on environment, applying pressure to most USD/Asia crosses.

• CNH: Offshore yuan went bid and surged to its best levels since 2018, as aforementioned risk-on factors overshadowed the latest goings-on surrounding China's troubled real estate sector and the escalating diplomatic boycott of 2022 Beijing Olympics.
• KRW: Easing sense of concern about the Omicron variant outweighed the deterioration in the local Covid-19 situation. The won was in demand, even as South Korea's daily cases surpassed 7,000 for the first time, while critical cases hit another record high.
• IDR: Spot USD/IDR retreated, with broader market sentiment in the driving seat. Indonesia's official consumer confidence index rose to the highest point since Jan 2020.
• MYR: USD/MYR retreated in tandem with most USD/Asia crosses. Domestic news coverage focused on the announcement from Malaysia's Court of Appeals, which upheld the guilty verdict against former PM Najib in 1MDB case.
• THB: The baht led gains in Asia EM space on dissipating Omicron angst. PM Prayuth played down potential for another lockdown, allowing the local business community to breathe a sigh of relief.
• PHP: Philippine markets were shut in observance of a public holiday.