KRW Lower Despite Hike

The greenback crept higher as markets hit the brakes on positive risk sentiment, most Asia EM currencies pressured lower.

• CNH: Offshore yuan weakened, the PBOC injected a net CNY 40bn of liquidity into the market via OMO's with 7-day reverse repos, the second consecutive day of injections, the Bank said yesterday that the injections are to ensure liquidity into month-end.
• SGD: Singapore dollar is weaker, On the coronavirus front there were 118 new cases in the past 24 hours, including 26 linked to the cluster at a worker dormitory. This was Singapore's highest daily number of locally transmitted cases in more than three weeks.
• TWD: Taiwan dollar is slightly stronger but has come off best levels. There were reports during the session that Taiwan to issue stimulus vouchers to ease Covid impact.
• KRW: Won is weaker, reversing an initial move higher after the BoK hiked rates 25bps, markets choosing instead to focus on the cautious tone and emphasis on gradual policy adjustment in the future.
• MYR: Ringgit is stronger, Malaysian PM Ismail Sabri extended an olive branch to the opposition Wednesday, strengthening his position ahead of a confidence vote, with his unprecedented move reducing political uncertainty in Malaysia.
• IDR: Rupiah declined, Several Indonesian politicians admitted receiving third doses of Covid-19 vaccines, sparking criticism as most Indonesians haven't received their first doses yet, while the Health Ministry recommended additional "booster" doses exclusively for health workers.
• PHP: Peso is lower, Pres Duterte's Spokesman Roque clarified that his boss would give way to his daughter Sara, if she decides to run for President in 2022, as he wants to avoid a Duterte-Duterte ticket. The President earlier said that he intends to run for Vice President.
• THB: Baht fell, coming off the back of its biggest two day gain in nine years. a subcommittee of Thailand's Covid-19 task force will discuss easing some restrictions today.