Greenback Flows Push USD/Asia Crosses Higher

The greenback held a bid as US yields rise to the highest level in a year, equity markets in the region receded amid general risk aversion, most USD/Asia FX crosses higher.

• CNH: Offshore yuan weakened, USD/CNH making an impressive turn from lows of 6.4009 yesterday to last trade at 6.4369. Chinese markets and the PBOC will return tomorrow, market participants may be trying to gauge sentiment of the central bank.
• SGD: Singapore dollar weakened, the government announced a budget yesterday that focused support on areas in need, the budget deficit target was cut by 83% for the coming financial year, starting April 1. Elsewhere data showed non-oil domestic exports rose above estimates.
• TWD: Taiwan dollar has strengthened, USD/TWD dipping further below the 28 handle intraday, the Taiex has soared over 4% which has helped support TWD.
• KRW: The won has weakened, but is off its lows, halting a five day rally. The pair gapped higher at the open, but heads into the close at session lows around 1106. Data showed M2 money supply rose 0.4%.
• INR: Rupee opened sharply higher, tracking gains in USD. The rate has pulled back from near the lowest levels since March 2020.
• IDR: USD/IDR bounced off a six-week low Tuesday and has extended gains today. Indonesia moved to facilitate its Covid-19 vaccination scheme by making immunisation mandatory for its citizens and by allowing the private sector to offer jabs
• MYR: Ringgitt is lower, its first loss in six days. The ringgit has failed to draw support from the easing of Covid-19 restrictions in Malaysia amid caveats re: its scope.
• PHP: Peso is lower, BSP Gov Diokno told BBG that it is too early to hike interest rates and "the current policy settings are appropriate."
• THB: Baht is weaker, the BOT MPC added fuel to the fire saying it was ready to use additional policy tools if needed, while a potential no confidence vote in the PM this week also sapped demand.