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Dollar Prevails Over Most Asia EMFX, Peso Aided By Local CPI Data


Overnight greenback strength lent support to USD/Asia crosses, albeit the Philippine peso went bid as local CPI data missed expectations.

  • CNH: Offshore yuan slipped against the greenback, even as the PBOC set their USD/CNY mid-point below sell-side estimate for the first time since Oct 19. Concerns about the ongoing crisis in China's property sector resurfaced after Kaisa Group flagged acute liquidity pressure.
  • KRW: USD/KRW reopened on a firmer footing, before trimming some gains. Overnight greenback strength drove the move.
  • PHP: The peso outperformed after Philippine inflation unexpectedly slowed in October, while Bangko Sentral ng Pilipinas pointed to the need to reassess the price environment ahead of their next monetary policy decision. Meanwhile, the decision to lower Covid Alert Level in Metro Manila by one notch likely provided further support to the local currency.
  • IDR: USD/IDR extended gains to levels last seen in late August, as the rupiah cemented its position as the worst performer in the Asia EM basket this week. Bank Indonesia sought to soothe the nerves, their Exec Director said that the central bank sees rupiah depreciation as temporary. He rattled the triple intervention sabre, but also noted that Bank Indonesia guards rupiah stability rather than the level of rupiah.
  • MYR: Malaysian markets reopened after a holiday. Spot USD/MYR crept higher, absorbing pent-up market impetus.
  • THB: The baht firmed a tad, albeit spot USD/THB respected yesterday's extremes. Participants await Thailand's CPI data for the month of October.

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