Weaker As JPY & Equities Weigh

USD/Asia pairs are mostly higher today, with sentiment deteriorating as the session progressed. Higher USD/JPY levels remain a headwind, while equity sentiment also softened.

• CNH: USD/CNH has pushed back above 6.6800, with earlier onshore equity gains unwound. We remain below yesterday's highs of just under 6.6900. Tomorrow May trade figures are on tap. Hong Kong shares are still stronger, led by tech shares on positive regulatory news.
• KRW: Spot USD/KRW dips have generally been supported. We are back above 1256, same for the 1 month NDF. Q1 GDP was revised down slightly, while the Kospi has struggled to stay in positive territory. Offshore investors have sold $111mn in local equities today.
• INR: USD/INR is unchanged, currently sitting just above 77.70. As expected, the RBI hiked the policy rate by 50bps. There is more work to do as the central bank raised its inflation forecast to 6.7%, from 5.7% previously.
• MYR: Spot USD/MYR has backed further away from a test of 4.4000. We currently sit at 4.3925. FX reserves data for May are due later today.
• PHP: USD/PHP 1-month NDF trades +0.040 at PHP53.090. Topside focus falls on Jun 6 high of PHP53.280, while bears keep an eye on May 30 low of PHP52.230. BSP's Medalla, who is set to become Governor on July 1, said in an interview that the central bank will likely deliver at least two more rate hikes to curb inflation.
• THB: USD/THB is a touch higher, but found some resistance above 34.50, last at 34.49. The Bank of Thailand is expected to keep its policy rate unchanged at 0.50% today despite accelerating inflation, as it considers price pressures to be driven by supply-side factors and sees the need to continue supporting economic recovery. See the full preview at this link.