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Won Weakens On Record Coronavirus Cases


The greenback initially rose but gave back the move as the session wore on. Risk sentiment was tepid, moves mixed in EM FX.

  • CNH: Offshore yuan declined for a third straight session yesterday. Markets continues to digest the PBOC's quarterly monetary policy report which many view as confirming the Central Bank's dovish bias.
  • SGD: Singapore dollar is stronger, retracing early declines. Data earlier showed Singapore Q2 GDP fell 1.8% Q/Q, less then the expected 2.0%. Following the release the MAS increased the 2021 growth estimate to 6%-7% from 4%-6% previously.
  • TWD: Taiwan dollar is slightly weaker, but is off session worsts. Markets look ahead to GDP data later in the week, the final Q2 figure will be published on Friday.
  • KRW: Won is weaker, on track for its third session of decline. South Korea reported 2,223 new coronavirus cases in the past 24 hours, a fresh all time record high. Elsewhere data earlier showed the adjusted jobless rate fell to 3.3% against estimates of 3.8%.
  • MYR: Ringgit is weaker, Intertek reported yesterday that Malaysia's palm oil exports fell 12.82% M/M in the first 10 days of the month.
  • PHP: Peso is stronger, BSP said in a written response to questions that its holdings of government bonds swelled almost fourfold during the pandemic. The central bank plans to "carefully unwind some of the government security purchases as part of its exit strategy from extraordinary monetary accommodation" once the economic recovery becomes sustainable.
  • THB: Baht gained, the U.S. added Thailand to its list of "very high risk" countries this week advised that even fully vaccinated Americans should avoid visiting the country. The designation delivered yet another blow to Thailand's struggling but systemically important tourism industry.

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