Muted Moves

Uncertain risk sentiment and muted performance saw most Asia EM FX fluctuate within ranges.

• CNH: Offshore yuan Is higher, managing to reverse a move lower in the wake of a weaker fix from the PBOC. Over the weekend the PBOC said it will maintain the exchange rate at "basically stable" levels, the comments come after rhetoric by its officials who suggested the yuan be allowed to appreciate and authorities should eventually relinquish control over the currency.
• SGD: Singapore dollar gained. On the coronavirus front Singapore will close two malls after new cases were linked to the properties. The vaccine programme is gathering pace, over 2m residents in Singapore have had their first dose of the vaccine, over 1/3 of the population.
• TWD: Taiwan dollar strengthened, Health Minister said that the coronavirus situation in Taiwan is "stable" and the rate of positive cases as a percentage of tests is decelerating. There is no current need to impose a harder lockdown if Taiwanese people cooperate to fight the pandemic he noted.
• KRW: Won weakened slightly, but is holding most of Friday's gain. South Korean President Moon has returned from his summit with US President Biden, on the back of the visit South Korea and the US have announced an agreement to deepen cooperation in a range of industries including pharmaceutical companies making Covid-19 vaccines, electric-vehicle batteries and semiconductor producers.
• MYR: Ringgit is flat. With further record-breaking daily Covid-19 case counts, Malaysia's gov't decided to tighten MCO (Movement Control Order) 3.0, albeit PM Muhyiddin clarified to Bernama/RTM that it will not be a total lockdown resembling MCO 1.0 imposed in March 2020 due to unbearable economic cost.
• IDR: Rupiah is flat, Bank Indonesia begin their policy meeting, with decision announcement coming up tomorrow. The MPC are widely expected to leave their benchmark interest rate unchanged for the fourth straight time.
• PHP: Peso is lower. The Philippines and China held bilateral talks on the situation in the South China Sea, seeking to diffuse tensions over disputed waters. Philippine Foreign Affairs Dept called the talks "friendly and exchanges," underlining the need for continued dialogue. Meanwhile, Vice Pres Robredo said that the dispute should be resolved in a multilateral format.