Currency Briefing Update - here’s what happened on March 13 morning

The US dollar retreated against Asian currencies but gains were capped.

RBS said:

USD retreated against Asian currencies in trading this morning. Gains were however capped at 0.3%.

Even though there is a consensus view that BoJ will signal no change in target rate, some investors are betting on BoJ extending their liquidity measures after the surprise move last month.

Also supporting the risk sentiment were export numbers out of Philippines. Exports unexpectedly rose by 3% yoy in January versus market expectations of a 19% yoy decline. December exports had declined 20.7%.

KRW, THB, PHP, SGD and MYR were all up 0.3% against the dollar. In China, USD/CNY fixing came in 23pip lower at 6.3259, in-line with the mildly stronger risk appetite. Offshore, USD/CNH fixing came in unchanged at 6.318, narrowing its dollar discount against the onshore fixing to 79pip from 102pip previously.