Won Leads Gains Amid Positive Mood Music, Baht Pares Loss On BoT Speak

The greenback showed some weakness, providing relief to emerging Asian currencies. Risk sentiment was firmer amid positive showing from regional equity benchmarks & U.S. e-mini futures.

• CNH: Spot USD/CNH bounced after an initial downtick and still holds ~30 pips above neutral levels. The rebound may have been facilitated by a continued acceleration in the spread of COVID-19 infections in China, with the daily case count nearing 1,000. The PBOC left Loan Prime Rates unchanged, as expected.
• KRW: The Korean won paced gains in the region, supported by firmer risk appetite. Domestic equity indices followed the regional trend, with the KOSDAQ up 1.44% as we type.
• CPO-tied IDR and MYR oscillated around neutral levels, struggling for a clear direction. Malaysia's trade balance widened to MYR21.93bn, exceeding the consensus forecast of MYR17.05bn.
• PHP: Spot USD/PHP recouped its initial losses and narrowed in on recent cyclical highs after the BSP reported a $1.574bn BoP deficit for the month of June.
• THB: The baht trimmed losses as BoT Gov Sethaput said monetary policy will put greater emphasis on inflation, with the economy on track for a recovery.