EM Currencies Rise; BI Rate Announcement Awaited

The greenback retreated again amid a constructive risk environment which saw most Asia EM FX gain.

CNH: Offshore yuan is stronger, but off best levels. USD/CNH briefly moved to the lowest levels since 2018 but bounced at 6.4008 with chatter of large banks stepping in on behalf of the PBOC to stem yuan strength.

SGD: Singapore dollar is stronger, data earlier showed a beat for Singapore Q1 GDP, following the release the MAS said the broader economy should continue to recover, and that new virus containment measures don't mean that GDP estimates will be downgraded.

TWD: Taiwan dollar is stronger, coronavirus cases remain elevated with 334 cases reported on Monday, Health Minister Chen said Taiwan was considering extending the soft lockdown, after previously raising the alert to level 2 from May 19 to May 28.

KRW: Won was higher from the open and continued to gain, pre-market data showed that consumer confidence rose to 105.2 in May from 102.2 previously, the May print was the highest since June 2018. The uptick in sentiment was helped by a bumper GDP figure in Q1 as well as soaring exports.

MYR: Ringgit is stronger, Malaysia extended quarantine period for Malaysians entering the country from Sri Lanka, Bangladesh, Nepal and Pakistan to 21 days from 14 days.

IDR: Rupiah gained, FinMin Indrawati told lawmakers Monday that a recovery in consumption & low-base effect will support Q2 GDP reading. She added that budget deficit reached 0.38% of GDP or IDR138.1tn at the end of Apr. Bank Indonesia are set to deliver their monetary policy decision today. Virtually all analysts expect the MPC to hold steady.

PHP: Peso is weaker. Health Undersec Vergeire that the Philippines may not reach herd immunity against Covid-19 by the end of the year.

THB: Baht is stronger, Thailand's National Economic and Social Development Council warned Monday that the critically important tourism sector may not be able to recover to pre-pandemic levels until 2026, which will affect as many as 7mn workers.