* Yuan hits lowest in more than eight months
* Philippine peso falls most, S.Korean won flat
(Adds text, updates prices)
By Shriya Ramakrishnan
May 27 (Reuters) - Most Asian currencies traded flat to
lower on Wednesday as rising Sino-U.S. tensions over proposed
security laws for Hong Kong prompted investors to latch on to
the safety of the dollar.
U.S. President Donald Trump said on Tuesday the United
States would announce before the end of the week a strong
response to China's planned national security legislation for
Hong Kong. Financial markets around the world have been caught this
month between headlines on worsening Sino-U.S. relations and
optimism over the easing of coronavirus-induced restrictions in
many countries.
A report on Beijing planning to expand the scope of its Hong
Kong security legislation further pressured the Chinese yuan
CNY=CFXS , which weakened as much as 0.3% to a more than
eight-month low of 7.16 per dollar. "Markets are concerned that China could allow for RMB
depreciation to signal to the U.S. that any revival of trade
tensions will be counterproductive, if it results in a stronger
USD against the RMB," said Wei-Liang Chang, FX and credit macro
strategist at DBS.
The Singapore dollar TWD=TP dipped 0.2%, while the
Malaysian ringgit MYR= firmed 0.2% as the market resumed trade
after a long weekend.
The Philippines, which reported its largest single-day
increase in new coronavirus infections on Tuesday, saw its
currency PHP= ease 0.3%. The central bank governor said remittances from millions of
Filipinos living and working overseas could still grow from last
year's $30 billion, but at a slower pace, which should help keep
the peso stable. EYES ON BOK
The South Korean won KRW=KFTC gave up early gains to trade
flat as market participants awaited the central bank's policy
decision on Thursday.
A majority of analysts polled by Reuters expects the Bank of
Korea to cut its policy rate to a record low, as the pandemic
hits exports and prospects of a second wave of infections cloud
the outlook. The won has witnessed increased bouts of volatility and is
the region's worst performer so far this year, with the economy
being closed linked to global supply chains.
As of last close, it was down 6.7% this year, followed
closely by the Thai baht THB=TH .
Analysts at ING expect the won to be the best performer in
case of any good news on COVID-19 like a potential vaccine, and
sold off the hardest in case of negative shocks such as a second
wave of infections or renewed trade tensions.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0438 GMT
Currency Latest Previous day Pct
bid Move
Japan yen 107.510 107.52 +0.01
Sing dlr 1.419 1.4162 -0.20
Taiwan dlr 30.006 29.988 -0.06
Korean won 1234.000 1234.3 +0.02
Baht 31.855 31.88 +0.08
Peso 50.630 50.47 -0.32
Rupiah 14720.000 14730 +0.07
Rupee 75.690 75.66 -0.04
Ringgit 4.353 4.361 +0.18
Yuan 7.158 7.1360 -0.31
Change so far in 2020
Currency Latest End 2019 Pct
bid Move
Japan yen 107.510 108.61 +1.02
Sing dlr 1.419 1.3444 -5.26
Taiwan dlr 30.006 30.106 +0.33
Korean won 1234.000 1156.40 -6.29
Baht 31.855 29.91 -6.11
Peso 50.630 50.65 +0.04
Rupiah 14720.000 13880 -5.71
Rupee 75.690 71.38 -5.69
Ringgit 4.353 4.0890 -6.06
Yuan 7.158 6.9632 -2.72