THB Firms As Gov't Refrains From Adding Curbs, PHP Slips On BSP Rhetoric

Most USD/Asia crosses were happy to hold narrow ranges, despite lingering Russia/Ukraine geopolitical risk. The baht outperformed on optimism about the outlook for domestic tourism sector, while the peso faltered after BSP Gov Diokno played down the chances of a rate hike in the first half of 2022.

• CNH: Offshore redback was rangebound, as lacklustre domestic headline flow and an in-line PBOC fix were shrugged off.
• KRW: Spot USD/KRW held a tight range, with eyes on domestic fiscal matters, as the government and lawmakers wrestled over the size of a new extra budget.
• IDR: Spot USD/IDR was steady even as Indonesia's Covid-19 cases remain in a sharp uptrend (albeit daily fatalities remain relatively low). Bank Indonesia's data showed that retail sales improved in January.
• MYR: Malaysia's daily Covid-19 caseload also continued to rise, but hospitalisations seem kept in check by a high vaccination rate. The ringgit shed a handful of pips, showing at a two-week low.
• PHP: The Philippine peso faced some headwinds after BSP Gov Diokno told the FT that the central bank may afford to be patient with raising interest rates, with no adjustments expected in 1H2022.
• THB: The baht firmed as participants assessed the outlook for domestic tourism industry. Thailand kept Covid-19 rules in Bangkok and several other provinces but refrained from adding new curbs to contain the surge in new cases.