Won Leads The Way Lower

Most Asia EM currencies weaker as the greenback holds its post-CPI move higher.

• CNH: Offshore yuan is slightly stronger, USD/CNH has hovered around neutral levels. Sino-US tensions could weigh after reports that trade reps from the US and UK met and agreed to tackle China's anti-competitiveness.
• SGD: Singapore dollar is flat, recovering earlier losses. GDP missed estimates, contracting 2.0% in Q2 against estimates of a 1.8% drop.
• KRW: The won is weaker, South Korea confirmed another record high coronavirus cases and tighter movement restrictions outside of the capital. USD/KRW hit the highest since October 2020.
• TWD: Taiwan dollar is flat, recovering from early losses and boosted by reports that Apple plans to increase iPhone production by 20% in 2021.
• MYR: Ringgit is weaker, Malaysia's Director-General of Health Noor Hisham said Tuesday that the daily Covid-19 case count topped 11,000 for the first time on record, amid the spread of the highly transmissible Delta variant. Noor Hisham noted that daily cases can rise further before stabilising.
• IDR: Rupiah declined, Indonesia added 47,899 new Covid-19 infections on Tuesday, the most since the beginning of the pandemic.
• PHP: Peso is weaker, Pres Duterte said that his repeated mentions of the possibility of running for VP were just intended to "scare off" his critics, but he is ready to join the race "if it is good for the country."
• THB: Baht is lower, Thai Cabinet gave a nod to a THB42bn economic aid package for people and businesses affected by the latest round of lockdown regulations, as well as another reduction of utility charges for two months. The latter step will likely exert some downward pressure on consumer-price inflation.