Most Asia EM FX See Small Gains As Risk Sentiment Rebounds

The greenback gave up early gains, but stayed within yesterday's range. Positive risk sentiment supported most Asia EM FX, though coronavirus concerns were a drag for some.

• CNH: Offshore yuan is stronger, retracing earlier declines after the PBOC set a fix above sell-side estimates for the sixth straight day. The cumulative miss in this period is 133 pips.
• SGD: Singapore dollar is weaker, the number of virus cases in Singapore has risen to a 10-month high. Officials have closed Changi Airport terminals and a linked shopping mall to the public for two weeks.
• TWD: Taiwan dollar has risen, retracing some this week's decline. After plunging a total of 9.5% in the first four trading sessions of this week the Taiex is up 1.5%.
• KRW: The won is weaker, on track for a fourth decline. South Korea reported 747 daily new coronavirus cases, above 700 for the second day.
• PHP: Peso is weaker. The gov't took the initiative after an underwhelming Q1 GDP report and said that mobility curbs in the NCR+ bubble will be eased. The region will be moved to "General Community Quarantine," the second-lowest level of restrictions, until the end of the month. The Presidential Palace clarified that some of the heightened restrictions will remain in place, despite lowering the overall level of curbs.
• THB: Baht has risen. Gov't spokesman said that the parliament will debate a THB3.1tn budget outlay from May 31 to Jun 2. The budget is expected to receive royal endorsement and become law by Sep.