* Thai baht slips 0.9% to more than seven-month low
* Taiwan dollar falls most in intraday trade since Aug
* S.Korean won on track for 4th session of losses
(Adds text, updates prices)
By Niyati Shetty
Jan 30 (Reuters) - Asian currencies weakened on Thursday,
with the Thai baht sliding to a more than seven-month low, hard
hit by worries over the rapid spread of a new virus from China
and its economic impact.
Mounting death toll from the novel pneumonia-like virus has
prompted the World Health Organisation to reconvene a meeting
later in the day to decide if the outbreak now constitutes a
global emergency. The virus has left 170 people dead and infected 7,711 so far
in China, and spread to at least 15 countries, including Taiwan,
South Korea, Thailand, Malaysia and Singapore.
Calling the epidemic a source of uncertainty for China's
economic outlook, the U.S. Federal Reserve said it is likely to
slow growth in the world's second-largest economy at least in
the near term. "Past experience (during the severe acute respiratory
syndrome outbreak) suggests a cumulative 3%-10% drop in emerging
Asian forex but since 2003, reliance on, and sensitivities to,
China have amplified," Vishnu Varathan, senior economist at
Mizuho Bank, said in a note.
Leading the declines among Asian currencies, the Thai baht
THB=TH eased up to 0.9% to 31.27 per dollar, after crossing a
key 31.00 per dollar barrier in the previous session.
The pace of the virus spread in China led markets to
reassess the potential impact on the Thai tourism industry,
Maybank analysts said.
Thailand, a popular destination for Chinese tourists, has
confirmed 14 cases of the virus, more than any country outside
China. The Chinese offshore yuan CNH= fell 0.2% to 6.9849 per
dollar, reversing Wednesday's gains. Onshore markets were closed
on account of the extended Lunar New year holidays and will
resume trading on Feb. 3.
The Taiwanese dollar TWD=TP slid as much as 0.9%, its
biggest intraday decline since August 2019, as investors priced
in the virus outbreak after returning from a five-day Lunar New
Year break.
A central bank official told Reuters that the apex bank
would keep a close watch on fluctuations in the foreign exchange
market and ensure stability if there were unusual ones.
South Korea's won KRW=KFTC faltered 0.7%, heading for a
fourth straight session of declines.
The central bank said it was premature to say whether the
potential impact from the new coronavirus should be countered
with further easing. The Indian rupee INR=IN softened 0.3%, while the Malaysian
rinngit MYR= , the Singapore dollar SGD= and the Indonesian
rupiah IDR= each lost 0.2%.
The following table shows rates for Asian currencies against
the dollar at 0515 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 108.880 108.99 +0.10
Sing dlr 1.363 1.3604 -0.19
Taiwan dlr 30.262 30.006 -0.85
Korean won 1184.900 1177.2 -0.65
Baht 31.250 30.98 -0.86
Peso 50.970 50.85 -0.24
Rupiah 13645.000 13620 -0.18
Rupee 71.448 71.25 -0.28
Ringgit 4.086 4.079 -0.17
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 108.880 108.61 -0.25
Sing dlr 1.363 1.3444 -1.36
Taiwan dlr 30.262 30.106 -0.52
Korean won 1184.900 1156.40 -2.41
Baht 31.250 29.91 -4.29
Peso 50.970 50.65 -0.63
Rupiah 13645.000 13880 +1.72
Rupee 71.448 71.38 -0.09
Ringgit 4.086 4.0890 +0.07
Yuan 6.937 6.9632 +0.38