Won Leads Gains After BoK

A mixed day for Asia EM currencies, most opened higher following a decline in the greenback overnight, some managing to retain strength even in the face of a USD bounce.

• CNH: Offshore yuan is weaker, USD/CNH reversing some of yesterday's decline. The PBOC rolled over CNY 100bn of MLF funds unexpectedly, while data showed GDP missed estimates slightly and retail sales, industrial production and fixed asset investment were above consensus.
• SGD: Singapore dollar weakened slightly but is still well above yesterday's low. Markets continue to digest GDP from yesterday, consensus among analysts though is that this dip is temporary and that Singapore is in a much stronger position than many of its regional neighbours.
• TWD: Taiwan dollar is stronger, USD/TWD back below 28.00. Markets await TSMC earnings later with another bumper report expected.
• KRW: The won is stronger, gaining further after a surprisingly hawkish press conference from BoK Gov Lee. He noted there was one hawkish dissenter to the unchanged decision today and that next meeting would be the time to discuss removing accommodation.
• MYR: Ringgit is stronger, Dep PM Ismail Sabri struck an optimistic note on reopening the country, as he suggested that a faster rate of vaccinations should allow more states to move into Phase Two of the National Recovery Plan. The whole country is expected to move into Phase Two in early August.
• IDR: Rupiah is weaker, several countries shut their borders to travellers arriving from Indonesia, which has become the main hot spot of Covid-19 in Asia. Indonesia's daily number of cases surpassed that of India and reached a new record high of 54,517 on Wednesday.
• PHP: Peso gained, clawing back early losses despite Goldman Sachs downgrading growth forecasts due to virus restrictions muting the economic recovery.
• THB: Baht is slightly stronger, several media outlets reported that Thailand considers a temporary ban on exports of locally manufactured AstraZeneca jabs, as the country seeks to accelerate its own inoculation drive. That said, the Bangkok Post reported that Thailand reported that an unspecified proportion of vaccines will be set aside for export.