Markets Play Catch Up After Overnight USD Decline

A brief dip lower in the greenback was reversed, DXY emerges from the Asia session marginally higher, most EM Asia FX gain though after a big move lower for the greenback yesterday.

• CNH: PBOC fixed USD/CNY at 6.5384, 7 pips below sell side estimates. Offshore yuan has weakened but holds most of yesterday's gains. USD/CNH last up 26 pips, recovering after breaking below yesterday's nadir.
• SGD: Singapore dollar is higher, USD/SGD down around 6 pips, running into bids around 1.3380. SGD is at a one month high here, markets look ahead to the MAS monpol statement which is expected in the next week.
• TWD: Taiwan's Foreign Minister said Taiwan is considering opening a travel bubble with other countries, while also raising the prospect of a trade deal with the US.
• KRW: Won is stronger, the best performer in Asia. Gains were helped by a beat from Samsung at its Q1 earnings and a wider current account surplus, but tempered by another uptick in coronavirus cases.
• MYR: Ringgit is stronger, the government yesterday announced it had relaxed regulatory conditions for some firms to boost the economy, markets await foreign reserves data later today.
• IDR: Rupiah is stronger, gaining for a third day, BI Deputy Gov Waluyo said yesterday the bank would continue to stabilise rupiah in line with fundamentals
• PHP: Peso is stronger, gains more muted than other pairs after weak inflation data yesterday sparked speculation the BSP has further room to cut.
• THB: Baht has moved higher, BOT released the minutes of the latest meeting and said it stands ready to use additional policy tools if needed, and noted the economy could perform below forecasts.