Most USD/Asia EM Crosses Lower As Greenback Continues Decline

The greenback continued its move lower after the US CPI print and some doubts that the vaccine rollout will continue as planned after suspension of the Johnson & Johnson inoculation. Most Asia FX rose.

• CNH: Offshore yuan is stronger, moving in a narrow range during the session. There were reports during the US session yesterday that Chinese Premier Li was keen to establish cooperation with the US, and that decouple would not benefit either side.
• TWD: Taiwan dollar is higher, the US is sending representatives to meet with Taiwan to which China responded unfavourably. Elsewhere there is a TD Securities reports doing the rounds that Taiwan are likely to be labelled a currency manipulator by the US tsy.
• SGD: Singapore dollar is stronger, taking out some key support levels after GDP rose above estimates and the MAS kept policy unchanged but raised forecasts.
• KRW: The won strengthened, leading gains in Asia, data earlier showed unemployment fell for second month in March. The March print came in at 4.0% from 3.9% previously, in line with estimates. The gains are attributed to bumper exports and robust consumer confidence translating to domestic demand. The print represents the first gain in jobs since the start of the pandemic.
• IDR: Rupiah is weaker, bucking the trend in the region. Jakarta extended its Covid-19 vaccination programme to the general public, with people accompanying two patients over 60 now also entitled to receive a jab. The policy was designed to accelerate the vaccination drive.
• MYR: Ringgit is higher, the Health Ministry suggested that Sarawak is back on its radar after the R rate in the state increased to 1.10 vs. the nation-wide rate of 1.06.
• PHP: Peso is stronger, Philippine Econ Planning Sec Chua warned that the country can miss its target of a 6.5% GDP growth this year, as it continues to battle the resurgence of the coronavirus. Chua said that next month's economic data will guide the review of economic targets. He added that "we were too risk averse: we shut down a big part of the economy when other countries didn't need to do that."
• THB: Markets in Thailand are closed for a local holiday.