Lagging USD sell-off

Asian FX is generally lagging G10 FX strength against the USD. China and Hong Kong equities have given back some of last week's rebound. Uncertainty around the China Covid situation is not helping at the margin. Shanghai is moving ahead with re-opening plans, but cases continue to rise in Beijing.

• CNH: USD/CNH continues to find selling interest above 6.7000 and we also had a slightly stronger than expected CNY fix today. Still, the currency hasn't been able to build on last week's rebound. Weaker equity market sentiment and some covid related headwinds has tempered momentum.
• KRW: 1 month USD/KRW is back sub 1270, although today's export data for the first 20 days of May continued to show slowing export momentum. FX stability was a focus point at the US and South Korean President's summit over the weekend.
• IDR: USD/IDR has edged higher through the session, back above 14660. Tomorrow's BI decision is expected to see rates left on hold. Elsewhere, FinMin Indrawati will speak on the 2022 state budget, while the government will review the remaining COVID-19 restrictions today.
• SGD: Has outperformed today, likely reflecting G10 FX strength against the USD. USD/SGD back to 1.3750. CPI data out shortly.
• PHP: USD/PHP is higher from best levels last week. We sit back close to 52.30. Higher oil is like not helping (Brent back above $113/bbl). BSP Gov Diokno said that the exit from easy monetary policy will be "gradual, well-communicated and outcome-based," with the central bank ready to take pre-emptive action if there are signs of inflation expectations becoming dis-anchored.
• INR: Bond yields are higher, as government cut taxes on fuels and boosted fertilizer subsidies in order to bring down inflation. Market expecting higher borrowing to meet funding shortfall. USD/INR 1 month back sub 78.00, which remains a short term pivot point.