Most Regional EM FX Outperform Greenback, Yuan Ignores Softer PBOC Fix

Overnight greenback weakness weighed on most USD/Asia crosses, while the yuan was unfazed by a soft yuan fixing delivered by the PBOC. Monetary policy decisions from Indonesia and the Philippines were eyed.

• CNH: Offshore yuan held a tight range, ignoring a softer than expected yuan fixing. The PBOC set their central USD/CNY mid-point at CNY6.3803, 17 pips above sell-side estimate.
• KRW: Spot USD/KRW went offered, even as South Korea's daily Covid-19 case count hit a fresh record. Local markets opened an hour later owing to national college entrance exams.
• IDR: The rupiah was marginally stronger, with focus on the upcoming monetary policy decision from Bank Indonesia.
• MYR: Spot USD/MYR advanced towards its 100-DMA, which has been intact since Oct 12. An uptick in Malaysia's Covid-19 cases provided a source of concern, while the Dewan Rakyat discussed Budget 2022.
• PHP: The peso garnered some strength ahead of the announcement of Bangko Sentral ng Pilipinas' monetary policy decision. Sino-Philippine geopolitical tension resurfaced, as Chinese Coast Guard blocked Philippine vessels carrying food supplies for troops stationed on a contested shoal.
• THB: Spot USD/THB fell to a new 10-week low. BoT Gov Sethaput delivered a speech, but refrained from comments on monetary policy. The official called for restructuring domestic economy, as the tourism sector will take longer to recover.