Local Dynamics At Play Amid Broad Negative Sentiment

Limited price action to close out the week, the greenback held the majority of its decline while equity markets in the region sold off.

• CNH: Offshore yuan weakened, despite a fix below sell-side estimates. The PBOC fixed USD/CNY at 6.4524, 32 pips below sell side estimates and only the ninth lower miss of 2021 so far. The central bank used local media to emphasise it was not considering tightening policy.
• SGD: Singapore dollar weakened slightly, USD/SGD moving higher through the session amid limited catalysts. The pair has gained over 0.2% this week.
• TWD: Taiwan dollar sold off today alongside domestic equity markets. USD/TWD rose from its lowest close since 1997 yesterday.
• KRW: The won started higher but gave back gains, there were reports of a potential fifth round of cash handouts, while coronavirus cases remain high but have slipped under 600.
• IDR: Rupiah weakened, spot USD/IDR has hit a 3-week high after BI cut rates yesterday. Indonesia C/A surplus narrowed to $800m vs estimates of $1.25bn.
• MYR: Ringgitt weakened slightly alongside oil, the pair has moved in a narrow range, swaps spreads have widened in recent sessions.
• PHP: Peso is stronger, snapping a four day losing streak. Government officials have reportedly agreed to recommend easing coronavirus containment measures in the capital.
• THB: Baht is slightly higher, the government are due to meet on Monday to discuss lifting remaining lockdown restrictions.