IDR Leads On Post-NFP Impetus, Local Covid Matters Weigh On THB & PHP

The broad-based USD sales observed after the release of the U.S. labour market report last Friday lent support to Asia EM FX, albeit domestic concerns about the spread of the Omicron coronavirus variant pulled the rug from beneath some regional currencies.

• CNH: Spot USD/CNH traded in negative territory and had a look below Friday's trough. Offshore yuan was unfazed by a slightly softer than expected PBOC fix and the detection of China's first community transmission of the Omicron coronavirus variant in Tianjin.
• KRW: Spot USD/KRW gapped higher at the re-open but trimmed those opening losses. The Bank of Korea are set to deliver their monetary policy decision later this week.
• IDR: The rupiah led losses in Asia EM FX space, as post-NFP greenback weakness provided a headwind for spot USD/IDR. Indonesian Investment Min Luhut said that the domestic coal crisis is over but Energy Min Tasrif said that the nation will need some more time before lifting coal exports ban.
• MYR: The ringgit traded on a firmer footing, aforementioned post-NFP impulse helped drag spot USD/MYR lower. Malaysia's Nov industrial output topped expectations in a welcome development for the MYR.
• PHP: The peso went offered as the Philippine's daily Covid-19 cases hit another all-time high, while the government ramped up efforts to ensure adequate supply of hospital beds.
• THB: The baht was comfortably the worst performer in the Asia EM basket, cementing its position as the main regional laggard this year. New virus countermeasures weighed on the THB amid expectations of a further decline in tourism confidence.