Won Knocked Down On Return From Holidays

The won tanked in a delayed reaction to yesterday's flight to safety, as trading resumed in South Korea after a local holiday. Concerns over the continued spread of the Delta coronavirus variant in Asia continued to linger.

• CNH: Offshore yuan lost some ground as China continued its regulatory crackdown, while an in-line PBOC fix provided little in the way of fresh impetus.
• KRW: The won was easily the worst performer in the Asia EM basket, with spot USD/KRW surging past key resistance from Sep 28, 2020 high of KRW1,174.80. The move occurred as onshore South Korean markets reopened after a long weekend, digesting the pent-up risk-off impulse.
• THB: The baht traded on a slightly softer footing amid lingering concern over yesterday's decision by Thailand's chief economic planning agency to cut 2021 growth outlook.
• MYR: Spot USD/MYR edged higher but respected a narrow range. Political uncertainty is elevated after PM Muhyiddin's resignation opened a period of horse trading before his successor gets picked. The King invited several party leaders to the Royal Palace today.
• PHP: Spot USD/PHP pulled back from its 15-month high as BSP Governor Diokno's comments for BBG grabbed attention. The official reiterated that RRR cuts are off the table now and suggested that the Philippines could still meet the 2021 growth target of +6%-7% Y/Y.
• SGD: SGD softened at the margin, even as Singapore's non-oil domestic exports beat expectations.
• TWD: Spot USD/TWD traded sideways. Taiwan's Premier said that the island would not collapse like Afghanistan if attacked by a "foreign force".
• Indonesian markets were closed in observance of the Independence Day.