Benefits From Higher Risk Appetite

The greenback fell to the lowest levels since early March as risk assets rose, a surge in metals also helped support EM FX.

• CNH: Yuan gained, a report from a government think tank sees GDP growth at 8% this year. Repo rates also rose as the PBOC held off injecting liquidity again even as demand rise ahead of holiday's next week.
• SGD: Singapore dollar strengthened, building on gains after a strong CPI report on Friday. Markets await the industrial production figures later today.
• TWD: Taiwan dollar rose, USD/TWD dipping below the 28.00 handle, it remans to be seen if the rate will close below the level, but NDF's indicate further TWD upside.
• KRW: The won strengthened as coronavirus cases fell back below 600, health authorities warned of tighter restrictions should case numbers pick up gain. GDP data awaits participants tomorrow.
• MYR: Ringgit gained, public support for PM Muhyiddin remains high and stable, according to the latest poll from Merdeka Center. Muhyiddin's approval rating slipped to 67% this month from 68% in March, still up from January's 63%. 70% of respondents were satisfied with the gov't's Covid-19 policies.
• IDR: Rupiah is stronger, the ASEAN summit held over the weekend brought no game-changers. Indonesia pushed for a Myanmar-led dialogue on the ongoing political crisis in that country and joined Vietnam in calling for the resumption of bilateral negotiations on the delineation of the border between their EEZs.
• PHP: Peso is higher, Philippine National Task Force Against Covid-19 said it expects delayed batches of Covid-19 vaccines supplied through the COVAX facility to be delivered next month, with 7-8mn doses due to arrive.
• THB: Baht bucks the trend and is weaker, Thailand's Public Health Emergency Operation Centre held an emergency meeting Sunday to discuss the resurgence of the local Covid-19 outbreak. Public Health Ministry off'l told the media that the gov't is planning to implement a new colour-coded system of targeted restrictions, which will effectively involve tighter curbs.