Some Asia EM FX Strengthens Despite Stronger USD

The greenback rose, pressuring most Asia EM FX, but local dynamics played their part and saw some USD/Asia crosses lower, flying in the face of a stronger DXY.

• CNH: Offshore yuan is weaker, USD/CNH rose as high at 6.4850 before pulling back slightly. Data showed industrial profits rose 92.3% in March after a 20.1% rise previously. Some caution on reports of an antitrust crackdown.
• SGD: Singapore dollar is weaker, retreating from resistance and a two-month high. USD/SGD stays within its recent range.
• TWD: Taiwan dollar strengthened again, USD/TWD consolidating further below the 28.00 handle. It was reported the government plans to start a trial program for fully vaccinated arrivals to apply for shorter quarantine when entering Taiwan.
• KRW: The won is stronger, but off best levels seen at the open. Data released earlier showed preliminary Q1 GDP above estimates. Q/Q printing 1.6% vs estimates of 1.1%, Y/Y growth at 1.8% vs estimates of 1.2%. Exports, consumption and investment all helped lift the figure.
• MYR: Ringgit hovered around neutral levels; FinMin Zafrul added that Malaysia is in the "fifth stage" of its economic recovery and endorsed the central bank's 2021 growth forecast of +6.0-7.5% Y/Y.
• IDR: Rupiah weakened slightly. Health Min Sadikin announced that Indonesia will introduce tighter border measures in anticipation of the return of its migrant workers from abroad. Migrants typically return home for the Eid al-Fitr holidays in May.
• PHP: Peso weakened. Diokno said Monday that RRR cuts remain on the table and reiterated his pledge to keep monetary policy settings accommodative as economic recovery gains pace. He appeared in a briefing of economic managers alongside Finance Sec Dominguez, who said that the gov't looks to trim inessential spending and explore additional sources of revenue. Econ Planning Sec Chua noted that economic managers will wait for Q1 GDP report before revising growth targets.
• THB: Baht is weaker; tomorrow's meeting of the local Covid-19 task force will provide much interest, with officials set to consider stricter curbs. Dep PM & Health Min Anutin suggested that the situation is expected to "return to normal" in two or three months, while Dep PM Supattanapong denied that the resurgence of infections would derail plans to start re-opening tourism in July.