* Malaysian c.bank meeting on Tuesday
* Indonesia inflation rate slows more than expected in April
* S.Korea factory activity posts sharpest fall since 2009 in
April
(Adds text, updates prices)
By Shreya Mariam Job
May 4 (Reuters) - Asian currencies slipped on Monday on
growing tensions between the United States and China over the
origin of the coronavirus, while the Malaysian ringgit weakened
ahead of a central bank meeting and on a grim economic forecast
for 2020.
Secretary of State Mike Pompeo said on Sunday that there was
"a significant amount of evidence" that the new coronavirus
emerged from a Chinese laboratory. Pompeo's comment comes days after U.S. President Donald
Trump threatened to impose new tariffs on Beijing in retaliation
over the coronavirus outbreak. With Chinese markets closed for a holiday, the offshore yuan
CNH= traded largely flat, while other Asian currencies slipped
into the negative territory.
The Indonesian rupiah IDR= weakened 1.5% and was the worst
performer in the region. The country's inflation rate in April
slowed more than expected as virus-driven curbs dampen demand.
Meanwhile, South Korean won KRW=KFTC shed 0.7% against the
dollar, weighed lower by weaker factory data and tensions
between North and South Korea further.
Worldwide lockdowns sent South Korea's factory activity in
April tumbling at its sharpest pace since the global financial
crisis, with exporters battered by the worst slump in orders in
16 years.
Moreover, multiple gunshots fired from North Korea early on
Sunday towards a guard post in South Korea also frayed investor
sentiment. RINGGIT
Malaysian ringgit MYR= weakened as much as 1.2%, pressured
by broader market sentiment and ahead of the country's central
bank meeting on Tuesday.
Bank Negara Malaysia is expected to make the biggest cut to
its benchmark interest rate since 2009, according to a Reuters
poll, in an effort to cushion the blow from the coronavirus
pandemic. Malaysia's finance minister said on Saturday that the
country's economy in 2020 could shrink more than initially
forecast. With emerging Asian central banks adopting unconventional
monetary policies to boost their economies, analysts at Mizuho
say these policies will likely result in an "FX spillover" and
expose Asian units to potential vulnerabilities.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0542 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 106.730 106.93 +0.19
Sing dlr 1.418 1.4151 -0.22
Taiwan dlr 29.823 29.802 -0.07
Korean won 1227.100 1218.2 -0.73
Peso 50.580 50.57 -0.02
Rupiah 15050.000 14825 -1.50
Rupee 75.770 75.11 -0.87
Ringgit 4.329 4.293 -0.83
Change so far in 2020
Currency Latest bid End 2019 Pct
Move
Japan yen 106.730 108.61 +1.76
Sing dlr 1.418 1.3444 -5.20
Taiwan dlr 29.823 30.106 +0.95
Korean won 1227.100 1156.40 -5.76
Baht 32.330 29.91 -7.49
Peso 50.580 50.65 +0.14
Rupiah 15050.000 13880 -7.77
Rupee 75.770 71.38 -5.79
Ringgit 4.329 4.0890 -5.54
Yuan 7.063 6.9632 -1.41