Most Asia EM Currencies Gain On Stimulus Hopes

The greenback extended its losses for a second session, while general risk on tone saw most EM FX gain. Volumes were thin as markets approach the LNY holiday.

• CNH: Yuan gained, the PBOC helped reassure markets saying its policies would remain stable yet flexible in its quarterly mon pol report. The PBOC fixed USD/CNY at 6.4533, around 10 pips above sell side estimates, PBOC injected a net CNY 30bn.
• TWD: Taiwan dollar gained after data yesterday showed exports rose for the seventh consecutive month thanks to bumper electronics demand.
• KRW: Won is higher, boosted by reports that AstraZeneca will start delivering the first batch of its COVID-19 vaccine to South Korea starting from Feb. 24, and the inoculation programme will begin in Feb. 26.
• INR: Rupee gained, supported by a robust bid tone in domestic equity markets.
• IDR: Rupiah inched higher, Indonesia's consumer confidence index issued by BI deteriorated to 84.9 from 96.5, following the re-imposition of social restrictions in Java and Bali. Indonesia also extended its border closure for foreigners by two weeks, through Feb 22.
• MYR: Ringgitt strengthened for a second day, supported by the upside in oil markets.
• PHP: Peso was broadly flat and moved within a tight range amid a lack of catalysts. Markets await details on further bond sales after additional stimulus was all but ruled out yesterday.
• THB: Baht is higher, gov't spokesman said that China informed PM Prayuth that it is ready to begin exports of Sinovac Covid-19 vaccines to Thailand. Dep PM Anutin said that the Thai drug regulator is expected to approve the jabs when the first shipment of 200,000 doses arrives later this month.