Slide Gathers Steam Through Session

A cautious start to the week for Asia EM FX, more weakness creeping in as US equities sell off during the session.

• CNH: Offshore yuan is weaker, creeping towards the 2021 highs set last week. Geopolitical tensions simmer, the US said it is in no rush to remove China sanctions while Australia threaten China with the WTO after wine sanctions.
• SGD: Singapore dollar weaker, data on Friday showed manufacturing output rose again last month, higher for a fourth straight month on robust demand for semiconductors and related equipment
• TWD: Taiwan dollar strengthened, but stalled at the 28.50 level, said to be an important level for the central bank. The Bloomberg monitoring indicator rise to 40 in February, the highest since 1989.
• KRW: The won is weaker, President Moon Jae-in dismisses his chief policy secretary Kim over property indiscretions. Moon appointed Lee Ho-seung, senior secretary for economic affairs, to replace Kim
• INR: Market closed for Holi festival.
• IDR: Rupiah is lower, The World Bank maintained its forecast for Indonesian GDP growth this year at +4.4% Y/Y. A refinery owned by Indonesia's state energy holding company Pertamina caught fire after an explosion this morning, injuring 20 people.
• MYR: Ringitt is lower amid political turmoil. During its general assembly meeting held over the weekend, Umno decided to sever its ties with PM Muhyiddin's Bersatu and its allies, with Umno Pres Zahid noting that their the PM's party "have ill intentions to replace and destroy Umno."
• PHP: Peso has strengthened, Pres Duterte's spokesman announced that Metro Manila and adjacent provinces would be placed under a strict week-long lockdown from today as the spread of new Covid-19 infections continued to gain pace.
• THB: Baht is weaker for a tenth session, Phuket businesses welcomed the gov't's decision to allow entry by vaccinated tourists from Jul 1. Phuket Chamber of Commerce noted that as a result the local tourism industry will see the cash inflow equivalent to THB84bn.