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EM ASIA FX-Asian units gain on China stimulus hopes, drop in new virus cases

Published 02/11/2020, 02:28 PM
Updated 02/11/2020, 02:32 PM
© Reuters.  EM ASIA FX-Asian units gain on China stimulus hopes, drop in new virus cases
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* S.Korean won, Thai baht lead gains
* Singapore dollar set to snap 11-day losing streak
* Malaysian ringgit gains most in nearly 2 weeks

(Adds text, updates prices)
By Shriya Ramakrishnan
Feb 11 (Reuters) - Emerging Asian currencies strengthened on
Tuesday, as a drop in new coronavirus cases and hopes for more
stimulus by Beijing to prop up a virus-stricken economy improved
risk appetite.
Chinese policymakers have implemented a raft of measures,
including liquidity injections and import tariff exemptions for
materials used for epidemic control, to support an economy
jolted by the virus outbreak. "The strengthening of the yuan has flown through to the rest
of the Asian currency basket," said Khoon Goh, head of Asia
research at ANZ Banking Group (Singapore).
The onshore yuan CNY=CFXS firmed 0.2% against the dollar,
set for the second straight session of gains.
A Chinese central bank advisor said on Tuesday the People's
Bank of China (PBOC) should consider lowering its benchmark
deposit rate to enable banks to reduce lending rates and help
small businesses. "As long as the coronavirus outbreak persists, the PBOC will
likely adopt a supportive stance with its policy settings. The
yuan may also be relied on to help offset the economic pressures
on the Chinese economy," said Han Tan, a market analyst at FXTM.
The death toll from the coronavirus epidemic in mainland
China climbed past 1,000 on Tuesday, however, the number of new
confirmed cases fell. Currencies of export-focused countries, which have been
under selling pressure due to concerns about the economic
fallout of the virus outbreak and a stronger dollar, led gains
in the region.
Both the South Korean won KRW=KFTC and the Thai baht
THB=TH appreciated 0.3%.
The Singapore dollar SGD= strengthened 0.2% and was set to
end a 11-day losing streak, while the Taiwan dollar TWD=TP
also advanced 0.2%.
Singapore expects a 25-30% drop in visitors this year due to
the new coronavirus outbreak, with a significant decline in
Chinese travel to the city-state expected to extend to other key
markets.
The Malaysian ringgit MYR= firmed 0.2%, the most in nearly
two weeks.
Focus will now shift to the country's fourth-quarter
economic growth figure due on Wednesday, which is expected to
slow to its weakest since mid-2016 on lower private consumption
and external demand, according to a Reuters poll. The Philippine peso PHP= gained 0.2%. Data on Tuesday
showed the Philippines' trade deficit narrowed to its lowest
level in six months in December, due to a surge in exports.
The Indian rupee INR= and Indonesian rupiah IDR= edged
up 0.1% each.


CURRENCIES VS U.S. DOLLAR

Change on at 0554 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.890 109.74 -0.14
Sing dlr 1.387 1.3894 +0.15
Taiwan dlr 30.029 30.102 +0.24
Korean won 1183.300 1187.1 +0.32
Baht 31.170 31.27 +0.32
Peso 50.700 50.78 +0.16
Rupiah 13680.000 13690 +0.07
Rupee 71.203 71.30 +0.14
Ringgit 4.138 4.148 +0.24
Yuan 6.973 6.9875 +0.21

Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.890 108.61 -1.16
Sing dlr 1.387 1.3444 -3.09
Taiwan dlr 30.029 30.106 +0.26
Korean won 1183.300 1156.40 -2.27
Baht 31.170 29.91 -4.04
Peso 50.700 50.65 -0.10
Rupiah 13680.000 13880 +1.46
Rupee 71.203 71.38 +0.25
Ringgit 4.138 4.0890 -1.18
Yuan 6.973 6.9632 -0.14


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