Russo-Ukrainian War Generates Defensive Impulse

The greenback appreciated against most Asia EM currencies after the West aggressively stepped up sanctions against Russia over its ongoing invasion of Ukraine, which reverberated across global financial markets.

• CNH: Spot USD/CNH gradually unwound its opening uptick, ignoring a weaker than expected PBOC fix. China's central bank set the USD/CNY reference rate at CNY6.2222, 22 pips above sell-side estimate. The yuan was unfazed by the risk of sales by the Russian central bank after Western sanctions restricted the CBR's access to its foreign reserves.
• KRW: Spot USD/KRW traded with a bullish bias, printing a fresh cycle high in the process. The won was pressured by fallout from the Russo-Ukrainian war and a North Korean rocket launch, described by Pyongyang as a test for a reconnaissance satellite.
• MYR: The ringgit garnered some strength in early trade, before giving away those gains, trapped between the opposing forces of risk aversion and firmer oil prices.
  
• PHP: Spot USD/PHP edged higher, even as the government confirmed easing Covid Alert Level in Metro Manila, but key resistance from PHP51.500 remained intact.
• THB: Defensive flows sapped strength from the baht, making it the worst performer in the region. A miss in Thailand's factory output growth rubbed salt into its wounds.
• Markets in Taiwan and Indonesia were closed in observance of respective public holidays.