Most USD/Asia Pairs Higher On USD/JPY Spike

Most USD/Asia pairs have trended higher today, in line with a stronger USD against the majors, particularly the spike in USD/JPY. The Korean won has been a notable outperformer.

• CNH: USD/CNH has broadly followed USD/JPY shifts today, albeit with a beta well below 1. USD/CNH is back above 6.7000, following a late NY session dip sub 6.6800. The fixing bias shifted back to a firmer CNY. China/HK equities have also outperformed the regional sell-off.
• KRW: The won has outperformed, with USD/KRW 1 month falling back below the 1283 level. Korean equities are lower, down by -0.50% at this stage, but this is not as bad as the tech drops recorded overnight. The won's performance is all the more impressive today given the JPY drop and modest CNH weakness.
• INR: USD/INR is holding relatively steady, remaining above the 78.00 level. The 1 month NDF is still being supported on dips below 78.20, we were last at 78.30. Lower than expected monsoon rainfall may delay the planting of crops, although conditions are expected to improve.
• IDR: USD/IDR continues to push higher, with spot through 14800, highs last seen in October 2020. Bond inflow momentum has rolled over once again. Focus is also on next week's BI meeting. With real yields drifting negative the pressure will increase for the central bank to act.
• PHP: Spot USD/PHP is hitting another round-figure ceiling and this time it is PHP53.500. The rate last deals at PHP53.471, little changed on the day. Reminder that the BSP holds its monetary policy meeting next Thursday and its leaders flagged potential for a hike. The question seems to be not whether they raise rates but by how much.
• THB: USD/THB has continued to push higher today, rising a further 0.5% to 35.27. Some carry over from yesterday's large $165mn in net equity outflows has likely weighed. Higher USD/JPY levels will have impacted as well. Late doors on Thursday, one of the seven MPC members denied speculation that the rate-setting panel could hold an emergency meeting soon. BoT's Kanit Sangsubhan noted that the next meeting will be held in August, in line with the schedule.