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EM ASIA FX-Asian currencies slip on concerns over rising virus impact to businesses

Published 02/18/2020, 02:03 PM
Updated 02/18/2020, 02:08 PM
© Reuters.  EM ASIA FX-Asian currencies slip on concerns over rising virus impact to businesses
USD/IDR
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AAPL
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* Bank Indonesia likely to cut rates on Thursday
* S. Korean won slips to weakest level in over a week
* Coronavirus impact on industries to show in Feb - China
regulator

(Adds text, updates prices)
By Shreya Mariam Job
Feb 18 (Reuters) - Asian currencies slipped on Tuesday as
increasing financial fallout of the virus outbreak in China and
chances of central banks opting for monetary easing as a measure
to shore up regional economies weighed on investor sentiment.
With death toll climbing to nearly 1,900 in China,
disruptions and delays in operations in the mainland owing to
the epidemic and its impact remained a concern for businesses.
"Caution from Apple that it doesn't expect to meet revenue
guidance for 1Q due to supply disruptions could also potentially
nudge markets to re-evaluate the macro impact of Covid-19," a
Maybank note said.
Apple Inc AAPL.O became one of the biggest corporate
casualties of the epidemic after it warned on Monday it was
unlikely to meet its quarterly sales guidance. Global financial markets felt the sting as investors took a
more cautious stance in trade.
The Chinese yuan CNY=CFXS slipped 0.2% as fears of the
macro-impact of the virus offset the steps taken by the
country's central bank to boost the economy.
Further dampening sentiment, a China regulator said the
epidemic will have a "major" impact on industries in the
mainland in February. Meanwhile, the Indonesian rupiah IDR= weakened 0.2%,
weighed down by growing expectations of a rate cut by the Bank
Indonesia meeting on Thursday.
A slim majority of analysts polled by Reuters expect
Indonesia's central bank to resume its easing cycle to cushion
any economic impact from the coronavirus. The Thai baht THB=TH also slipped 0.2%. Pressure is
building on the central bank of Southeast Asia's second largest
economy to cut rates to support an economy which posted its
slowest pace of growth in five years for 2019. The Bank of Thailand will next review monetary policy and
provide updated economic forecasts on March 25.

SOUTH KOREAN WON
The South Korean won KRW=KFTC declined up to 0.5% to its
weakest level in over a week and was the worst performer among
Asian units.
The country's president Moon Jae-in said the economy is in
an emergency situation and needs to stimulate domestic demand
and that the government should take every possible measure.
"The COVID-19 outbreak could disrupt tech supply chains and
even derail the nascent turnaround in the global semiconductor
industry," an ANZ note warned, adding that tech-reliant
economies like Taiwan and South Korea are likely to be the worst
hit.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0524 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.710 109.88 +0.15
Sing dlr 1.391 1.3888 -0.13
Taiwan dlr 30.058 30.056 -0.01
Korean won 1188.500 1183.9 -0.39
Baht 31.230 31.16 -0.22
Peso 50.585 50.58 -0.01
Rupiah 13670.000 13650 -0.15
Rupee 71.393 71.30 -0.13
Ringgit 4.148 4.144 -0.10
Yuan 6.995 6.9813 -0.20

Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.710 108.61 -1.00
Sing dlr 1.391 1.3444 -3.32
Taiwan dlr 30.058 30.106 +0.16
Korean won 1188.500 1156.40 -2.70
Baht 31.230 29.91 -4.23
Peso 50.585 50.65 +0.13
Rupiah 13670.000 13880 +1.54
Rupee 71.393 71.38 -0.02
Ringgit 4.148 4.0890 -1.42
Yuan 6.995 6.9632 -0.46


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