* Singapore dollar hits weakest level since May 2017
* S. Korean won hits weakest level since Oct
* Thai Baht at weakest in over eight months
(Adds text, updates prices)
By Shreya Mariam Job
Feb 20 (Reuters) - Asian currencies weakened against a
stronger dollar on Thursday as fears of the economic impact from
the coronavirus outbreak prompted a wider sell-off in the
region.
The epidemic, which has disrupted businesses and global
supply chains, has raised worries over fallout on regional
economies with trade and travel ties with China.
"South Korea and Singapore are two countries that have been
quite affected by the coronavirus," said Junvum Kim, sales
trader at Saxo Capital Markets.
"The coronavirus cases have risen considerably higher
compared to other countries, apart from China, and that is
having quite a negative impact on those two countries."
The South Korean won KRW=KFTC fell 1% to its lowest level
since Oct. 4, after the government reported 31 new cases,
bringing the total number of people infected in the country to
82. The Singapore dollar SGD= fell about 1% to its lowest
level in nearly three years. The city-state had reported a total
of about 77 cases of coronavirus as of Tuesday.
Australia and New Zealand Banking Group downgraded
Singapore's GDP growth forecast for 2020 to 0.4%, from 1.5%
previously, citing a significant impact from the virus in the
first quarter.
Broad-based gains in the dollar following a steep slide in
the Japanese yen also led investors away from riskier local
currencies. USD/
The Thai Baht THB=TH fell as much as 0.8% to touch its
weakest level in over eight months.
The Chinese yuan CNY=CFXS slipped 0.3% after the central
bank cut the benchmark lending rate, as widely expected, to
support an economy jolted by the virus outbreak. The Indonesian rupiah IDR= declined 0.6% ahead of Bank
Indonesia's decision on interest rates. A slim majority of
analysts polled by Reuters expect the central bank to resume its
easing cycle at its policy meeting this week to cushion the
economic impact from the coronavirus outbreak.
"While BI (Bank Indonesia) preference is for a stronger IDR
(Indonesian rupiah), headwinds to growth have intensified and
this will likely take precedence," a Mizuho note said.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0618 GMT
Currency Latest bid Previous day Pct Move
Japan yen 111.440 111.35 -0.08
Sing dlr 1.401 1.3943 -0.47
Taiwan dlr 30.220 30.152 -0.23
Korean won 1198.800 1189.3 -0.79
Baht 31.370 31.16 -0.67
Peso 50.650 50.61 -0.08
Rupiah 13760.000 13680 -0.58
Rupee 71.615 71.52 -0.13
Ringgit 4.180 4.164 -0.38
Yuan 7.014 6.9977 -0.24
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 111.440 108.61 -2.54
Sing dlr 1.401 1.3444 -4.03
Taiwan dlr 30.220 30.106 -0.38
Korean won 1198.800 1156.40 -3.54
Baht 31.370 29.91 -4.65
Peso 50.650 50.65 +0.00
Rupiah 13760.000 13880 +0.87
Rupee 71.615 71.38 -0.33
Ringgit 4.180 4.0890 -2.18
Yuan 7.014 6.9632 -0.73