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Ending The Week On A High Note

ASIA FX

Most Asia EM FX higher amid positive risk sentiment.

  • CNH: Offshore yuan is stronger, reversing earlier weakness. The PBOC fixed USD/CNH above sell-side estimates, indicating a preference for a weaker yuan, but the move reversed, data showed Chinese companies industrial profits rose 240% Y/Y in the first four months of 2021.
  • SGD: Singapore dollar gained, on the coronavirus front Singapore reported 15 cases in the past 24 hours. Testing has surged in Singapore, to the point where results are being delayed as labs work at maximum capacity.
  • TWD: Taiwan dollar is higher, on track for a fourth day of declines. The pair is at the lowest since May 10 where it bottomed out at 27.7415, which denotes the lowest since the pair dropped past 28.00. There were reports yesterday that the DPP wants to double planned stimulus.
  • KRW: Won is higher, President Moon said Thursday that South Korea needs to maintain expansionary fiscal policy for the time being despite a hike in national debts attributable to the response to COVID-19.
  • MYR: Ringgit gained, the Finance Ministry listed uncertainty over the prolonged Covid-19 outbreak, vaccine supply disruptions and commodity price shocks as key downside risks to Malaysia's economic recovery. The Ministry has estimated that the recent tightening of Covid-19 curbs will have an impact of less than 1% on domestic GDP growth.
  • IDR: Rupiah bucked the trend and weakened, there was limited local news flow, markets focusing on yesterday's announcements of PPKM movement restrictions in a bid to stem the spread of coronavirus. Bank Indonesia said Thursday that money supply grew 11.5% Y/Y in April on the back of seasonal impact of Ramadan and Eid holidays.
  • PHP: Peso is stronger, S&P affirmed the Philippines' sovereign credit rating at BBB+, with outlook left at stable. The agency said that the Philippines is expected to undergo "healthy" economic recovery, which will result in reductions of fiscal deficits over the next 2-3 years.
  • THB: Baht is higher, Bangkok has launched registration for Covid-19 vaccinations Thursday, with the mass rollout of jabs due to start next month.

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