Offshore Yuan Gains As Most Asia EM FX Weaken

Offshore yuan bucked the regional trend and garnered some strength despite apparent domestic headwinds.

• CNH: Spot USD/CNH went offered despite China's gloomy Covid-19 situation and a slightly (20-pip deviation) weaker than expected PBOC fix. Worth noting that Chinese authorities signalled discomfort with the spread of Covid-19, with Premier Li asking local officials to "add a sense of urgency" when implementing policies.
• KRW: Firmer U.S. Tsy yields underpinned an upswing in spot USD/KRW, after the rate completed a double-bottom pattern on Monday. Participants are preparing for Thursday's monetary policy decision from the BoK, with analysts divided on the likelihood of a rate hike.
• IDR: The rupiah held a very tight range amid limited local headline flow. Several parties supporting the extension of President Widodo's term rowed back on their earlier declarations after the leader pushed back against the idea.
• MYR: Spot USD/MYR had a look above the MYR4.2400 figure for the first time since Nov 29 but trimmed gains thereafter.
• PHP: Spot USD/PHP extended its rally to a two-week high before paring gains.
• THB: The baht lost some altitude on broader regional trend ahead of the Songkran holiday. The BoT released the minutes from its March monetary policy meeting, but they did not offer much in the way of fresh insights.