Greenback Marches On

Further gains for the greenback on Monday saw Asia EM FX come under pressure from the open, but a reversal of sentiment saw most USD/Asia crosses retreat from session highs.

• CNH: PBOC fixed USD/CNY at 6.5338, just 2 pips above sell side estimates, offshore yuan weakened at the start of the session, USD/CNH touching 6.5515 as Chinese equity markets dropped. The yuan reversed its fortunes though, strengthening as equity markets reversed losses on touted intervention from China state funds. Offshore yuan is down some 125 pips, USD/CNH last at 6.5388, but still holding most of the gain from yesterday.
• SGD: Singapore dollar is stronger on the session, USD/SGD initially moved up to 1.3530, the highest since Nov 5, before dropping back to 1.3496 last.
• TWD: Taiwan dollar is weaker, USD/TWD rarely not spending the entire session under 28, the pair last at 28.348. Markets await CPI and trade balance data at 0800GMT/1600HKT.
• KRW: The won has weakened, stocks and bonds have both seen outflows from foreign funds have persisted for a third day.
• INR: The rupee has strengthened, but has come off best levels of the session. Markets focus on bond market developments amid a lack of local data.
• IDR: The rupiah continues to weaken, sliding despite intervention from the Bank of Indonesia yesterday.
• MYR: The ringgit has declined again, the latest resurgence of coronavirus and further restrictions are said to weigh on the outlook for GDP.
• PHP: The peso is stronger, resisting the prevailing trend of the region again. Data earlier showed the unemployment rate was steady at 8.7%
• THB: Baht is weaker, on track for a sixth day of losses which would be the longest losing streak since September, USD/THB is now close to challenging the 31.00 level.