Ripples Of Risk Off From Turkey

A bout of risk aversion after Turkish President Erdogan removed the central bank governor saw the greenback strengthen and put Asia FX under pressure.

CNH: Offshore yuan is weaker, but has come off worst levels as the session has worn on. Comments over the weekend from PBOC Governor Yi that the bank still has space to expand liquidity also helped weaken the yuan. LPR rates were kept on hold.

SGD: Singapore dollar is weaker, but did briefly foray into positive territory, SGD is supported by virtue of having the highest real yields of any AAA rated country.

TWD: Taiwan dollar is weaker, USD/TWD continues its move higher and brushes up against resistance at 28.50. Markets look ahead to export orders at 0800GMT/1600HKT.

KRW: The won is flat, recouping losses through the session after opening lower. Data earlier showed exports were strong in the first 10-days of the month, on track for another bumper month.

INR: Rupee is stronger, the rise comes even as the RBI survey cautions over the rising number of coronavirus infections.

MYR: Ringgit is weaker, palm oil futures continued to falter on Friday and erased gains registered over the last two weeks. Brent & WTI both have resumed losses today which has weighed on the ringitt.

IDR: Rupiah is weaker, Fitch said Bank Indonesia could deliver a further 50bp worth of rate cuts this year. As a reminder, many sell-side desks have already called an end to the easing cycle.

PHP: Peso has bucked the trend in the region and is stronger, the gov't imposed restrictions on travel into/out of the Manila region for the two weeks between Mar 22 - Apr 4.

THB: Baht is weaker, Thai Dept of Disease Control said that it detected a fresh cluster of Covid-19 infections among migrant workers in Samut Prakan, with the province re-emerging as a Covid hotspot. BSP said last Friday that the current account surplus is expected to narrow this year after hitting $13bn in 2020