Won Leads The Charge Higher

Outside of INR, all EM Asia FX currencies are firmer against the USD, with the won leading the charge at +1%.

• CNH: USD/CNH traded higher earlier on geopolitical concerns and a benign USD/CNY fix. However, strength in local equities, lower Covid numbers and further signs of stimulus support saw the currency rebound. From highs above 6.7800 we dipped back to 6.7475.
• KRW: USD/KRW spot has traded sharply lower, down more than 1% from yesterday's levels to sub 1255. Strength in tech equity sentiment from overnight and further gains in regional equities have been the main drivers of today's surge. There have also been reports of month end USD selling from exporters.
• INR: USD/INR is only modestly higher, probing above 77.60, but rupee is underperforming strength elsewhere in the region. Higher energy prices a likely headwind. Earlier, RBI Governor Das stated he will not hike to the extent it derails growth. He also noted that the RBI is less mindful of outright levels in USD/INR but on the rate of depreciation.
• IDR: Spot USD/IDR re-opened sharply lower, with broader greenback weakness driving the move. The 1 month NDF is now sub 14600. Bloomberg cited veteran analyst Dorab Mystry as noting that Indonesia's palm oil exports "are still not fully operational," with domestic storage tanks filling up quickly.
• PHP: USD/PHP is back sub 52.30 today, around 0.25% below closing levels from yesterday. Monetary Board Member Medalla will replace Diokno as central bank chief from July 1, while the incoming Finance Secretary said he wants to keep Rosalia de Leon as the Treasurer.
• MYR: USD/MYR is back down through 4.3800, likely aided by the push in Brent above $117/bbl. Outside of commodity moves, Zuraida Kamaruddin quit Bersatu and will be meeting the PM to discuss her resignation as Plantation Industries and Commodities Minister. Malay Mail reported that Premier Ismail Sabri may respond with a Cabinet reshuffle next week.