Yuan Leads Gains

The greenback reversed early gains, most Asia EM FX gained despite mixed risk sentiment.

• CNH: Offshore yuan strengthened, reversing early losses on reports of constructive trade talks with the US. Elsewhere there was a report in China Securities Times that the exchange rate should be decided by the market, a sign that the PBOC will refrain from regular interventions.
• SGD: Singapore dollar is flat, USD/SGD hovers just above a 76.4% retracement level at 1.3245.
• TWD: Taiwan dollar is stronger, reversing early losses. Taiwan reported a total 304 coronavirus cases yesterday the government also announced tighter social distancing measures.
• KRW: Won is flat, keeping to a narrow range through the session after strengthening yesterday. The BoK kept rates on hold as expected but upgraded growth and CPI forecasts.
• MYR: Ringgit is stronger, the Sultan of Johor called on the government to implement a full lockdown if Covid-19 case count continues to rise and urged residents to practice self-quarantine whenever possible.
• IDR: Rupiah is stronger, as a recap, Bank Indonesia left its benchmark interest rate unchanged on Tuesday, noting that liquidity instruments will be their preferred tool going forward. Limited domestic headline flow.
• PHP: Peso gained, the Daily Inquirer cited Metropolitan Manila Development Authority (MMDA) chief as noting that regional mayors want Covid-19 restrictions eased further.
• THB: Baht is higher, Pattaya Mayor said that the city looks to welcome foreign tourists without quarantine requirements in Q4. Under the reopening plan drafted by local authorities, tourists would have to remain in Bang Lamung and Sattahip districts for seven days after arrival.