Mostly Lower, Ringgit Bucks The Trend

A risk off session saw most Asia EM currencies decline, even as DXY also sustained losses.

• CNH: Offshore yuan is weaker, USD/CNH is up 102 pips. Comments from the meeting of US and Chinese officials have not been encouraging, Sino-US relations are said to face difficulties.
• SGD: Singapore dollar is flat, USD/CNH has hovered around neutral levels all session. Industrial production data is due later today.
• TWD: Taiwan dollar is weaker, there were reports n the Commercial Times that the Taiwanese cabinet will propose a 2%-3% increase in spending to at a meeting tomorrow
• KRW: Won declined, South Korea reported 1,318 coronavirus cases in the past 24 hours, down due to fewer tests over the weekend, but infections outside the capital area continued to pile up, triggering toughened restrictions.
• MYR: Ringgit strengthened, markets focus on the first sitting of parliament this year. PM Muhyiddin is expected to face tough questions over his governments handling of the pandemic.
• IDR: Rupiah is flat, clawing back early losses. Indonesia will extend its tightest virus restrictions for another week until Aug. 2 as cases remain elevated.
• PHP: Peso is slightly lower, giving back early gains. Markets await the annual address from President Duterte where he is expected to push for pandemic recovery measures.
• THB: Markets in Thailand remain closed for Asarnha Bucha day.