Mixed Trends

Asian FX has been mixed today. Spot KRW and TWD remain under pressure, but CNH has outperformed to a degree. THB and INR weaker trends persist.

• CNH: USD/CNH continues to see offers above 6.7000. We saw another firmer than expected CNY fixing today, which helped. Inflation data was slightly weaker than expected, fueling some speculation of easier policy settings. Local equities rebounded from earlier losses, which aided sentiment.
• KRW: The won has found little joy from some USD softness against the majors. Equity outflows persist, well over $1bn in the past 2 sessions combined. Earlier, the current account dipped into deficit in April, but this trend should improve in May.
• INR: USD/INR is edging higher in early trade, tracking above 77.80, which is at fresh record highs for the pair. There is little relief from the dip in oil prices, but onshore equities are more 1% weaker, so this is likely to be offsetting the crude dip.
• IDR: Spot USD/IDR has extended its bullish run as it gapped higher at the re-open, but buying momentum petered out thereafter. The rate last deals at IDR14,578, up 15 figs on the day. Indonesia revised its rule on palm oil export tax, setting its maximum rate at $288/ton for CPO trading north of $1,500/ton. The revised rule takes effect today.
• PHP: USD/PHP has been relatively steady, with spot hugging the 52.95 level. The Philippines' unemployment rate slipped to 5.7% in April from 5.8% recorded in March as the labour market continued to tighten. The underemployment rate also moderated (to 14.0% from 15.8%), but so did the participation rate (to 63.4% from 65.4%).
• THB: Spot USD/THB has pushed up to 34.66, +0.5% above yesterday's closing levels. The opposition is preparing to file a no-confidence motion against PM Prayuth and nine of his ministers next Wednesday. A source told the Bangkok Post that this will be the last no-confidence debate before the government's term expires in March 2023.