KRW Swings From Gains To Loss

An up and down session with the greenback tempering early gains, most Asia EM currencies starting positive, turning negative and now head into the close flat/with minor gains.

• CNH: Offshore yuan is stronger, the PBOC kept LPR rates on hold – there was an outside chance of a cut after some of the recent dovish PBOC moves, but state media telegraphed that the PBOC is unlikely to cut LPR rates in August.
• SGD: Singapore dollar gained, rising from the lowest levels in a month. Officials said late yesterday that Singapore will trial quarantine-free travel lanes for vaccinated passengers next month from Germany and Brunei as well as opening up to visitors from Hong Kong and Macau.
• TWD: Taiwan dollar is weaker, USD/TWD approaching the 28.00 handle. Markets look ahead to BOP current account data today, export orders are expected to have risen 21.2% in July
• KRW: Won is weaker, giving back early gains as USD/KRW hit the highest levels since September. South Korea extend current social distancing restrictions for two weeks
• MYR: Ringgit gained, Ismail Sabri has the support of 50 MPs and temporary PM Muhyiddin Yassin has also endorsed his former deputy.
• IDR: Rupiah is weaker and the worst performer in Asia. Indonesia's current account deficit widened to 0.8% of GDP in Q2, balance of payments deficit was $0.4b in Q2, from $4.1b of surplus in Q1.
• THB: Baht is flat, in a consolidation pattern ahead of a vote on the second and third readings of the fiscal 2022 budget.
• PHP: Peso gained, halting a two-day decline. Metro Manila region will downgrade to the second-strictest movement restrictions from Aug. 21 to Aug. 31.