Yuan Drops Alongside PMI's

Mixed performance for Asia EM currencies as coronavirus concerns continue to weigh.

• CNH: Offshore yuan weakened slightly. PMI data earlier showed activity slipped in both the manufacturing and non-manufacturing sector, though remained expansionary. Employment remained in contractionary territory in both the manufacturing and non-manufacturing surveys.
• SGD: Singapore dollar gained towards the end of the session after hugging a narrow range; the MAS upgraded CPI and growth forecasts and was positive on the global recovery.
• TWD: Taiwan dollar is flat today after losing some ground yesterday with caution around dividend related outflows from Taiex companies being touted as a driver for yesterday's drop. The US and Taiwan will commence long-stalled trade talks today, computer chips and vaccines are expected to be the main topics of discussion.
• KRW: The won is weaker. On the coronavirus front South Korea reported 794 new cases in the past 24 hours, a sharp jump from 595 on Tuesday. Data earlier showed industrial output fell 0.7% on the month in May against an expected expansion of 0.7%.
• MYR: Ringgit is weaker, FinMin Zafrul announced that Malaysia will release its updated GDP forecast for 2021 in mid-August, alongside GDP data for the second quarter. The off'l warned that the current growth target of +6.0%-7.5% may have to be revised lower, owing to the extension of nationwide lockdown.
• IDR: Rupiah declined, the Covid-19 task force confirmed the impending tightening of restrictions across the country, after the Straits Times ran a report suggesting that the country will declare a hard lockdown by Saturday.
• PHP: Peso is lower, Bloomberg circulated snippets from a statement from Bangko Sentral ng Pilipinas Governor Diokno, who says that the point-inflation CPI forecast for this month is +4.3% Y/Y.
• THB: Baht fell, The BoT said Tuesday that it will ease FX rules for individuals and businesses, in an attempt to tackle baht volatility. Officials are planning to tweak FX rules in 4Q2021.