Early Post-FOMC Impetus Subsides, Idiosyncratic Catalysts Eyed

Most currencies from Asia EM basket faced some initial pressure on the back of post-FOMC impetus, which gradually wore off. Regional participants assessed the Evergrande situation.

• CNH: Offshore yuan sold off in early trade but managed to regain poise thereafter. The Evergrande story continued to draw attention as coupon payment deadline for the real estate giant's 2022 dollar note loomed large.
• KRW: Spot USD/KRW reopened sharply higher, as onshore South Korean markets reopened after the Chuseok holiday, printing its best levels in a year. The rate eased off as the won recovered, with local economic officials pledging to monitor risks to financial market stability.
• IDR: The rupiah traded on a softer footing. FinMin Indrawati outlined a narrower forecast range for Q3 GDP growth (+4.0-5.0% Y/Y vs. +4.0%-5.7% Y/Y projected before).
• MYR: The ringgit managed to swing into a gain after Malaysian government pledged to reopen interstate travel and swathes of the tourism industry after inoculating 90% of the adult population.
• THB: The baht struggled to recoup its initial losses as concerns over Thailand's decision to raise the official debt ceiling continued to linger. Spot USD/THB showed at its highest point in more than four years.
• PHP: The peso was among the worst performers in the region and spot USD/PHP hit its best levels in a month ahead of the announcement of monetary policy decision from the Philippine central bank.
• TWD: TWD treaded water, with the local central bank also due to deliver their monetary policy decision today.
• SGD: USD/SGD sold off ahead of the release of Singapore's CPI data later today.