Risk-Off Impetus Carried Over From Wall Street Peters Out

Risk-off impetus from Wednesday's NY hours spilled over into Asia, but petered out as the session progressed. Positive news on Shanghai's COVID-19 situation helped to soothe the nerves, as local authorities outlined further re-opening plans and confirmed that the city's port restored 90% of throughput capacity.

• CNH: Spot USD/CNH lost some altitude. The PBOC set the mid-point of permitted USD/CNY trading band 15 pips shy of sell-side estimate.
• KRW: The won trimmed its opening losses, but remained on the back foot, as growth concerns took centre stage. Across the 38th parallel north, the DPRK appeared to be preparing an ICBM or nuclear test that could coincide with U.S. President Biden's visit to Seoul.
• IDR: Spot USD/IDR soared to its best levels since Oct 2020 before trimming gains. Indonesian palm oil producers continued to voice their opposition against the export ban applied to the edible oil. Elsewhere, Indonesian FinMin said that the 2022 average USD/IDR exchange rate is seen at IDR14,300-14,700.
• MYR: Spot USD/MYR went bid, showing at its highest point since Mar 2020, even as Malaysia's April trade surplus beat expectations.
• PHP: The peso outperformed after BSP Governor Diokno said the space for accommodative monetary policy has "considerably narrowed" as "second round effects are starting to manifest." He spoke on the eve of rate decision, due within a couple of hours.
• THB: Spot USD/THB ticked higher but remained within yesterday's range. The local COVID-19 task force will consider re-opening bars and pubs, with the final decision expected Friday.