EM Asia Currencies Decline In Risk Off Trade

Most USD/Asia EM crosses rose to fresh multi-month highs as the greenback held its recent gains amid a risk off tone.

• CNH: Offshore yuan is weaker, reversing earlier gains. The PBOC left the LPRs unchanged for the 14th month in a row and set its central USD/CNY mid-point at CNY6.4546, 8 pips below sell-side estimate.
• SGD: Singapore dollar weakened further, creeping towards its 2021 lows. On the coronavirus front the government in Singapore has announced it will scale down its reopening plans amid a jump in new cases over the last week.
• KRW: The won is weaker, dropping despite another set of robust export data. Exports rose 29.5% in the first 20 days of June, imports up 29.1%. The export gains were attributed to robust demand for chips, autos and petroleum products.
• TWD: Taiwan dollar is weaker and the worst performer in Asia., USD/TWD approaching the 28.00 handle.
• MYR: Ringgit is weaker, FinMin Zafrul clarified that phase 2 of the National Recovery Plan will still represent a stringent MCO, but with looser capacity limits and longer list of businesses allowed to operate.
• IDR: Rupiah is lower, Some of Indonesia's regional leaders have voiced an opinion that stricter Covid-19 measures are needed. Yogyakarta Gov & Sultan Hamengkubuwono X said that the provincial administration was mulling implementing a full lockdown.
• PHP: Peso declined, BSP said Friday that it now expects current account surplus to reach $10.0bn in 2021 (prev. est. was $9.1bn) and $6.7bn in 2022 (prev. est. was $5.2bn). Philippine budget balance is due for release tomorrow, while Thursday will see the announcement of the latest monetary policy decision from the BSP.
• THB: Baht fell, Fitch affirmed Thailand's sovereign credit rating at BBB+ on Friday, leaving outlook at stable.