* Most Asian equities, base metals tumble on outbreak fears
* Onshore yuan weakens 0.4%, offshore eases past 6.9/dollar
* S. Korean won falls as Jan. 1-20 exports to China tumble
(Adds text, updates prices)
By Rashmi Ashok
Jan 21 (Reuters) - Most Asian currencies slipped on Tuesday,
as concerns about a new strain of coronavirus in China took a
toll on risk appetite.
China reported a fourth death from the flu-like coronavirus
as the number of cases continued to rise, sending jitters
through Asian markets as hundreds of millions of Chinese are
expected to travel for the Lunar New Year holiday. The onshore Chinese yuan CNY=CFXS slipped 0.4%, while the
offshore unit CNH=D3 weakened past 6.9 against the dollar,
even as broader Asian equities and base metal prices dropped
sharply on the news.
Countries reporting the outbreak could face selling pressure
on their currencies next week, wrote Jeffrey Halley, senior
market analyst for Asia Pacific at OANDA.
"The rally in Asia Inc. FX markets is over for now until we
have more clarity on SARS 2.0.," he said, referring to the
deadly SARS virus outbreak in 2003 that plunged Hong Kong into
recession and led to a slowdown in China.
The South Korean won KRW=KFTC lost 0.7% to fall the most
in the region and took an added hit after data showed exports to
China in the first 20 days of January dropped 4.7%.
Overall exports, however, fell at their slowest pace in a
year, helped by a recovery in chip sales. Currencies closely linked to the yuan's movements, the
Malaysian ringgit MYR=MY and Singapore dollar SGD= weakened
0.2% each.
A Reuters poll showed Malaysia's central bank is largely
expected to keep its benchmark interest rate unchanged at its
meeting on Wednesday, saving ammunition for use for a possible
economic slowdown later in the year. Meanwhile, the Thai baht THB=TH held firm at 30.34 against
the greenback. The baht was the region's only gainer, aside from
the Japanese yen JPY= , which benefited from safe-haven demand
during the spreading panic.
On Monday, Thailand's central bank further relaxed mortgage
lending rules to help home buyers, easing tighter regulations
that were imposed last year to rein in bad debt. following table shows rates for Asian currencies against the
dollar at 0459 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 109.960 110.18 +0.20
Sing dlr 1.349 1.3466 -0.16
Taiwan dlr 29.977 29.960 -0.06
Korean won 1166.200 1158.1 -0.69
Baht 30.340 30.35 +0.03
Peso 50.980 50.96 -0.04
Rupiah 13660.000 13625 -0.26
Rupee 71.155 71.10 -0.08
Ringgit 4.068 4.058 -0.23
Yuan 6.894 6.8670 -0.39
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.960 108.61 -1.23
Sing dlr 1.349 1.3444 -0.32
Taiwan dlr 29.977 30.106 +0.43
Korean won 1166.200 1156.40 -0.84
Baht 30.340 29.91 -1.42
Peso 50.980 50.65 -0.65
Rupiah 13660.000 13880 +1.61
Rupee 71.155 71.38 +0.32
Ringgit 4.068 4.0890 +0.53
Yuan 6.894 6.9632 +1.01