* Chinese yuan set for second weekly decline
* S.Korean won down 0.8%, biggest drop in over 1 week
* Singapore dollar set for biggest weekly fall since Nov
2016
(Adds text, updates prices)
By Niyati Shetty
Feb 7 (Reuters) - Asian currencies weakened on Friday, with
the South Korean won leading the pack, as the rising death toll
and economic damage from the coronavirus epidemic cast a shadow
on global economic outlook.
The toll in mainland China jumped to 636 by the end of
Thursday, up by 73 from the previous day, with the number of
infections at 31,161. The yuan CNY=CFXS slipped as much as 0.2% to 6.983 per
dollar, and was poised for its second weekly decline.
The Chinese central bank warned that the domestic economy
could be disrupted in the first quarter due to the outbreak,
adding that a recovery could be expected once the virus is
brought under control.
"Relief gains this week are now showing signs of slowing as
reality check plays catch-up," Maybank analysts said in a note.
"Renewed fears of local transmission or rise in spread
outside China will dampen sentiment and unwind earlier gains."
Upbeat U.S. economic data, China's stimulus measures and
positive headlines regarding the Sino-U.S. trade war gave
traders some respite this week amid worries over the virus.
The won KRW=KFTC eased as much as 0.8% to 1,188.70 per
dollar, marking its biggest intraday drop in more than a week,
and was on track to snap two weeks of declines.
South Korea's vice finance minister said the virus could
have a negative impact on the country's domestic consumption,
exports and auto industry, adding that market stabilisation
measures would be taken if volatility rises. The Singapore dollar SGD= fell marginally, and was poised
for a 1.8% weekly drop, its biggest since November 2016.
DBS, Singapore's biggest bank, downgraded the city-state's
2020 growth rate to 0.9% from 1.4%, due to an expected economic
impact from the coronavirus. The Indonesian rupiah IDR= declined 0.4%, while the Thai
baht THB=TH and the Malaysian ringgit MYR= softened 0.3%
each.
Meanwhile, the Philippine peso PHP= was little changed, a
day after the central bank cut interest rates and said it was
prepared for further easing to shield the economy from the
coronavirus impact. Earlier on Thursday, India's central bank kept rates on hold
but worries about the economic impact of the virus outbreak has
raised the chances of further monetary policy easing across Asia
this year. following table shows rates for Asian currencies against
the dollar at 0558 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 109.870 109.99 +0.11
Sing dlr 1.387 1.3855 -0.07
Taiwan dlr 30.092 30.082 -0.03
Korean won 1187.500 1179.8 -0.65
Baht 31.160 31.07 -0.29
Peso 50.730 50.76 +0.06
Rupiah 13665.000 13615 -0.37
Rupee 71.240 71.20 -0.06
Ringgit 4.133 4.1225 -0.25
Yuan 6.981 6.9720 -0.13
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.870 108.61 -1.15
Sing dlr 1.387 1.3444 -3.04
Taiwan dlr 30.092 30.106 +0.05
Korean won 1187.500 1156.40 -2.62
Baht 31.160 29.91 -4.01
Peso 50.730 50.65 -0.16
Rupiah 13665.000 13880 +1.57
Rupee 71.240 71.38 +0.20
Ringgit 4.133 4.0890 -1.06
Yuan 6.981 6.9632 -0.26