* Eyes on G7 conference call later in day
* Ringgit eases ahead of cenbank meeting
* Rupiah gains after measures to stem slide
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser
(Adds text, updates prices)
By Nikhil Nainan
March 3 (Reuters) - Gains in most Asian currencies fizzled
out on Monday, as hopes of a coordinated global approach to
tackle the economic fallout from the coronavirus outbreak gave
way to uncertainties over the details of any such action.
With markets pinning hopes on a G7 conference call later in
the day, a statement being crafted on how they plan to soften
the economic hit does not specifically call for new government
spending or coordinated rate cuts, a source with knowledge of
the deliberations told Reuters. The statement, expected on Tuesday or Wednesday, will see G7
nations pledge to work together to mitigate the damage but the
source did say the language of the statement is subject to
change as it is still under discussion.
"The devil, it seems, is now in the detail and this will
offer the degree of confidence that the turnaround in risk has
legs," Chris Weston, head of research at brokerage Pepperstone,
said in a note prior to the Reuters story.
"The market would be looking for strong responses from
central banks and slowing momentum in the spread of new COVID-19
cases. The lack of either could still cause jittery," said
Edward Ng, a portfolio manager at Nikko Asset Management in
Singapore.
Earlier, the Reserve Bank of Australia became the first
major central bank to cut rates, with some local focus now
shifting to the decision by Malaysia's central bank due later in
the day. The dollar .DXY had flattened after the G7 story, while
most currencies in Asia gave up most of their gains.
South Korea's won KRW=KFTC advanced 0.1% against the
dollar, giving up most of its 0.7% gain in early trade, as the
virus continued to spread in the country. Taiwan's dollar
TWD=TP held its 0.4% gain.
Money markets are fully pricing in a rate cut of at least
0.25 percentage point by the Federal Reserve at its March 17-18
meeting, though policymakers are dealing with a depleted arsenal
after years of support since the financial crisis.
Reassurances from leading finance officials in recent days
reflect fears that the epidemic could deal a serious blow to a
global economy trying to recover from the U.S.-China trade war.
The ringgit MYR= weakened 0.1% ahead of the interest rate
decision, with a Reuters poll showing a narrow majority of
economists predicting a 25 basis point cut. RUPIAH
A series of new measures rolled out by Indonesia on Monday
supported a rise in the rupiah IDR= , though the currency fell
off its session peak.
Bank Indonesia will cut banks' reserve requirements for
savings in foreign currencies, while stepping up its
intervention to steady the unit, which had dropped sharply last
week. It is also relaxing rules for domestic non-deliverable
forward transactions.
The rupiah was up 0.1% after strengthening 0.4% earlier.
Yields on 10-year government bonds ID10YT=RR were little
changed after spiking last week.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0510 GMT
Currency Latest bid Previous day Pct Move
Japan yen 107.820 108.3 +0.45
Sing dlr 1.391 1.3898 -0.09
Taiwan dlr 30.010 30.124 +0.38
Korean won 1192.900 1193.7 +0.07
Baht 31.500 31.47 -0.10
Peso 50.730 50.71 -0.04
Rupiah 14245.000 14260 +0.11
Rupee 72.723 72.68 -0.06
Ringgit 4.204 4.201 -0.07
Yuan 6.971 6.9620 -0.13
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.820 108.61 +0.73
Sing dlr 1.391 1.3444 -3.36
Taiwan dlr 30.010 30.106 +0.32
Korean won 1192.900 1156.40 -3.06
Baht 31.500 29.91 -5.05
Peso 50.730 50.65 -0.16
Rupiah 14245.000 13880 -2.56
Rupee 72.723 71.38 -1.85
Ringgit 4.204 4.0890 -2.74
Yuan 6.971 6.9632 -0.11