* Yuan hits weakest level in more than one month
* The Philippine Q1 GDP expected on Thursday
* Indonesian cenbank to provide more liquidity
(Adds text, updates prices)
By Shreya Mariam Job
May 6 (Reuters) - Asian currencies weakened on Wednesday,
with the Chinese yuan leading losses as the currency resumed
trade after a long market holiday that saw a further spike in
Sino-U.S. tensions over the origin of the coronavirus pandemic.
The yuan CNY=CFXS lost as much as 0.6% to hit its weakest
level in more than a month before paring losses as the currency
caught up with the frayed sentiment following threats of new
tariffs by the United States in retaliation over the virus
outbreak. Meanwhile, new measures by regional central banks eased some
of the pressure on currencies as a slew of bleak data show the
brutal impact of pandemic on their economies.
The Indonesian rupiah IDR= pared losses after the central
bank governor pledged to provide as much liquidity as required
to support economic growth, while vowing to prioritise interest
rate policy to maintain rupiah IDR= stability. Southeast Asia's largest economy recorded its weakest pace
in economic growth since 2001 in the first quarter. Meanwhile, the South Korean won KRW=KFTC firmed 0.5% after
the country's central bank said it would suspend auctions of
U.S. dollars from the currency swap deal with the Federal
Reserve given the stabilising market conditions. The easing of lockdown measures in different parts of the
world has lifted investor sentiment and supported some riskier
assets in the past few sessions.
The Philippine peso PHP= firmed 0.3%. The country is set
to report its first-quarter economic growth figures on Thursday.
"Similar to Indonesia, we expect the GDP growth in the
Philippines to start reflecting the impact of the COVID-19
pandemic as it slows sharply to 1% YoY in Q1," a Mizuho note
said.
Philippines' trade deficit widened slightly in March as both
exports and imports contracted sharply. However, the string of weak data is expected to prompt
further stimulus measures from the central bank with an easing
trend inflation likely to provide more room for measures to
boost the economy.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0528 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 106.360 106.58 +0.21
Sing dlr 1.417 1.4155 -0.08
Taiwan dlr 29.904 29.880 -0.08
Korean won 1223.500 1229.1 +0.46
Peso 50.470 50.64 +0.34
Rupiah 15080.000 15030 -0.33
Rupee 75.785 75.63 -0.21
Ringgit 4.306 4.301 -0.12
Yuan 7.087 7.0629 -0.34
Change so far in
2020
Currency Latest bid End 2019 Pct
Move
Japan yen 106.360 108.61 +2.12
Sing dlr 1.417 1.3444 -5.10
Taiwan dlr 29.904 30.106 +0.68
Korean won 1223.500 1156.40 -5.48
Baht 32.385 29.91 -7.64
Peso 50.470 50.65 +0.36
Rupiah 15080.000 13880 -7.96
Rupee 75.785 71.38 -5.81
Ringgit 4.306 4.0890 -5.04
Yuan 7.087 6.9632 -1.75