* Malaysia c.bank rate decision awaited
* Indonesian Q1 GDP grew at slowest pace since 2001
* Thai April consumer prices decline most in over 10 years
(Adds text, updates prices)
By Shreya Mariam Job
May 5 (Reuters) - Asian currencies were mostly firmer on
Tuesday, as easing lockdowns in some parts of the world offset
worries about rising tensions between China and the United
States.
The slower spread of coronavirus in some countries lifted
risk sentiment with New Zealand recording no new cases for a
second day in a row and Germany, Finland and New York planning
to ease lockdown restrictions. A rise in oil prices from the prospect of improving demand
as social restrictions ease and falling supply also helped boost
sentiment. O/R
Meanwhile, investors await the outcome of a policy meeting
by Bank Negara Malaysia (BNM) later on Tuesday where it is
expected to cut rates by 50 basis points, its biggest cut since
the global financial crisis. The Southeast Asian economy has been hit with a double
whammy of a slump in oil prices and disruptions caused by
virus-driven curbs.
ING expects further monetary easing given the pressure on
the Malaysian economy from lower oil prices and pandemic
worries.
"A greater hit to growth in the current quarter and
protracted deflation ahead lead us to add another 50 basis point
cut to our BNM policy forecast," Prakash Sakpal, ING's economist
for Asia, said in a note.
The ringgit MYR= firmed about 0.2% ahead of the decision.
The Taiwan dollar TWD=TP was the best performer among
emerging Asian currencies gaining 0.3%, while the Singapore
dollar SGD= and the Philippine peso PHP= rose 0.2% and 0.3%,
respectively.
Philippine annual inflation eased to a five-month low in
April. Economists expect the falling price trend to allow more
room for the central bank to implement measures to boost
economic growth. Elsewhere, the Indonesian rupiah IDR=ID weakened as much
as 0.3% after Southeast Asia's largest economy recorded its
weakest economic growth in nearly two decades in the first
quarter. The 2.97% growth rate for the quarter was well below
the 4.3% predicted by the central bank and the 4.04% forecast by
a Reuters poll. The Thai baht THB=TH weakened marginally after April
consumer prices fell 2.99% from a year earlier, well below
expectations, to mark its biggest decline in more than a decade.
A Reuters poll had forecast a 1.20% drop in prices. Financial markets in China and South Korea were closed for a
holiday.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0601 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 106.600 106.73 +0.12
Sing dlr 1.414 1.4165 +0.18
Taiwan dlr 29.811 29.900 +0.30
Baht 32.355 32.33 -0.08
Peso 50.506 50.66 +0.30
Rupiah 15085.00 15050 -0.23
Rupee 75.545 75.71 +0.22
Ringgit 4.310 4.315 +0.12
Change so far in
2020
Currency Latest bid End 2019 Pct
Move
Japan yen 106.600 108.61 +1.89
Sing dlr 1.414 1.3444 -4.92
Taiwan dlr 29.811 30.106 +0.99
Korean won 1229.100 1156.40 -5.91
Baht 32.355 29.91 -7.56
Peso 50.506 50.65 +0.29
Rupiah 15030.000 13880 -7.65
Rupee 75.545 71.38 -5.51
Ringgit 4.310 4.0890 -5.13
Yuan 7.063 6.9632 -1.41