EM Currencies Weaken

Most Asia EM FX declines as the greenback rises after Fed Chair Powell acknowledged that price increases, while expected to be transitory, are bigger than expected.

• CNH: Offshore yuan is weaker. The PBOC set its USD/CNY mid-point at CNY6.4621, 13 pips shy of sell-side estimate. USD/CNH extended its current winning streak to 9 days in a row.
• SGD: Singapore dollar is weaker, USD/SGD creeping higher throughout the session but stopping short of yesterday's high at 1.3476. The 2021 high at 1.3531 remains a target for bulls. Markets look ahead to CPI data later in the session.
• TWD: Taiwan dollar is weaker, on track for the seventh straight weaker close. There were reports that Taiwan plans to extend the soft lockdown until Jul 12. Industrial production data is due later in the session.
• KRW: The won is weaker, USD/KRW creeping towards its 2021 highs. The MOF said the extra budget is unlikely to exceed KRW 30tn, after reports yesterday it could be as high as KRW 35tn.
• MYR: Ringgit is weaker, S&P affirmed Malaysia's long-term foreign currency debt rating at A-, leaving outlook at negative. The agency flagged risks surrounding the Covid-19 outbreak and domestic political uncertainty.
• IDR: Rupiah is lower, losses past the 50-DMA, which kicks in at IDR14,384, would open up the 200-DMA at IDR14,356. Conversely, a jump above May 3 high of IDR14,475 would open up Apr 28 high/76.4% recovery of the Apr 13 - May 10 slide at IDR14,518/14,519.
• PHP: Peso fell. Pres Duterte has ordered gov't agencies to expedite the distribution of Covid-19 jabs to provinces.
• THB: Baht declined, Thai authorities warned that Bangkok hospitals are running out of ICU beds, owing to the admission of new Covid-19 patients.