USD Dynamics Still In Play

The greenback gave back some of its recent move higher, while risk sentiment reversed with lower bond yields which saw a bid in risk assets.

• CNH: The yuan strengthened, PMIs stayed in expansionary territory but the pace moderated from last month. Markets look ahead to announcements from the Two Sessions this week.
• SGD: Singapore dollar weaker, but fared better than most of its peers in Asia after robust factory output data on Friday.
• INR: Rupee is weaker, extending losses from Friday. GDP data showed the economy did grow in Q4, but less than expected
• IDR: Rupiah is weaker, expansion in Indonesia's manufacturing sector eased in Feb, with Markit PMI deteriorated to 50.9 from 52.2, while CPI rose in line with expectations.
• MYR: Ringgitt is weaker, the move attributed to underlying dollar dynamics, PMI deteriorated to 47.7 in Feb from 48.9 recorded in Jan. Malaysia indicated more targeted lockdowns would be implemented.
• PHP: Peso is weaker, but has fared better than peers in the region. Manufacturing PMI printed 52.5 in February, unchanged, while the local COVID-19 vaccination programme was started today.
• THB: Baht is lower, USD/THB playing catch up after a long weekend. Local Markit Manufacturing PMI came in at 47.2 vs 49.0 prior, indicating a faster pace of contraction in the sector.
• KRW: Markets closed for a local holiday
• TWD: Markets closed for a local holiday