FOMC Puts The Cat Among The Pigeons

Most Asia EM FX weaker after a jump in the greenback post-FOMC.

• CNH: Offshore yuan I stronger, retracing some of the losses sustained after the FOMC. Data showed fiscal spending in the Jan-May period rose 3.6%, while fiscal revenue rose 24.2%. Elsewhere the NDRC said commodity speculation was cooling after controls.
• SGD: Singapore dollar is slightly stronger but is holding most of its losses. There were reports that the government of Singapore is considering the timing of the removing some lockdown restrictions as case numbers rise again.
• TWD: Taiwan dollar is weaker, markets await the CBC rate announcement later today, the bank is expected to remain on hold at record low 1.125%.
• KRW: Won is the worst performer, hitting the lowest level since May. Losses were tempered after BoK Senior Deputy Gov Lee said the BoK plans to take measures to stabilise markets if necessary.
• MYR: Ringgit is weaker, Malaysia's King called for the parliament to be reconvened as soon as possible. The Conference of Rulers also said that there is no need to extend the state of emergency in Malaysia beyond Aug 1.
• IDR: Rupiah is lower, Bank Indonesia are set to announce their latest monetary policy decision later today, virtually all analysts expect benchmark rates to remain on hold after just tightening mobility restrictions.
• PHP: Peso weakened, Pres Duterte called running for Vice Pres once his tenure expires in 2022 a "good idea," despite earlier showing some reservations. Duterte's party passed a resolution last month, asking him to run for vice presidency.
• THB: Baht fell, PM Prayuth said late Wednesday that Thailand is planning to welcome foreign visitors in 120 days and expects that most Thai residents will be offered at least one Covid-19 jab by Oct.