Risk Aversion Pressures Asia EM FX

The greenback rose amid general risk aversion in Asia, while a steeper yield curve in the US also added pressure to most Asia EM FX.

• CNH: Offshore yuan is weaker, despite another fix stronger than expectations from the PBOC, its fourth in a row. The PBOC injected a net CNY 10bn today, the fourth injection in a row after a lengthy hiatus.
• SGD: Singapore dollar weakened, concern over a pickup in coronavirus cases remains. The head of the virus taskforce said late yesterday that situation is at a tipping point as it grapples with the costs of imposing more restrictions.
• TWD: Taiwan dollar is weaker for the second day, USD/TWD rising above the 28.00 handle. The Taiex has now fallen 10% from April highs, while there are reports in Liberty Times that Taiwan could further tighten coronavirus restrictions.
• KRW: Won is weaker despite strong labour market data, South Korea reported 635 daily new coronavirus cases, back above 600. Meanwhile, an aide to President Moon has said that a vaccine partnership with the US is one of the major agenda items for the summit with the US next week.
• MYR: Ringgit weakened, post-GDP yesterday BNM flagged the positive impact of "improvement in domestic demand and robust exports performance," but the data did not cover MCO 3.0 imposed across the whole country earlier this week. Palm oil rose to a record high during the session, jumping above MYR 4,500.
• PHP: Peso decline, BSP will deliver their latest monetary policy decision later today. Policymakers are widely expected to leave interest rates on hold, according to BBG poll of analysts, with the lone dissenter calling for a 25bp cut. We have also forecast a stand-pat decision.
• THB: Baht is lower. Public Health Ministry said it aims at inoculating 70% of Bangkok residents (~5mn people) in two months after PM Prayuth expressed concern about disappointing level of registrations for the vaccines.