Early Moves Reversed

Safe havens caught a small bid after the PBOC drained liquidity from the system at the MLF operations, this saw the greenback higher and reversed EM FX gains, most USD/Asia EM crosses higher as a result.

• CNH: Offshore yuan is weaker, USD/CNH rising sharply after the aforementioned MLF operation inspired caution.
• SGD: Singapore dollar is weaker, reversing earlier gains after the greenback went bid.
• TWD: Taiwan dollar bucking the regional trend, there have been some developments on the COVID-19 front, Taiwan announced late yesterday it would ease quarantine rules for air crews from April 15, while it plans to widen the vaccination programme from April 21.
• KRW: Won weakened after the BoK held rates at 0.50%, the bank noted its policy stance remained accommodative but noted the potential for higher growth and inflation.
• MYR: Ringgit is weaker, dropping from the highest level in a week. Malaysian epidemiological experts warned against the impending fourth wave of infections. PM Muhyiddin called upon Ramadan bazaar visitors to observe existing Covid-19 restrictions.
• IDR: Rupiah is weaker, an official at the Energy and Mineral Resources Ministry told Antara that the gov't could save IDR22.12tn in spending if it scraps power subsidies for 15.2mn users. The gov't is currently drafting its electricity subsidy scheme for 2022. Markets await trade data.
• PHP: Peso is stronger, another to buck the trend. Overseas remittances rose 5.1% Y/Y in Feb, beating BBG est. of a 2.0% increase, after a 1.7% decline recorded in Jan. Philippine workers sent $2.48bn home, boosting the YtD sum of foreign remittances to $5.08bn.
• THB: Thai market are closed for a holiday.