* Fed broadens access to dollars for foreign cenbanks
* Indonesian rupiah top loser among Asian currencies
* South Korea factory activity, exports down in March
(Adds text, updates prices)
By Shriya Ramakrishnan
April 1 (Reuters) - Asian currencies eased on Wednesday as
investors braced for a steep economic slump in the wake of
lockdowns in many countries to contain the coronavirus' spread,
although losses were limited by the U.S. Federal Reserve's move
to increase dollar liquidity.
The Fed on Tuesday broadened the ability of dozens of
foreign central banks to access U.S. dollars during the
coronavirus crisis by allowing them to exchange their holdings
of U.S. Treasury securities for overnight dollar loans.
"We are finding this news (Fed's liquidity measures) coming
alongside the continued deteriorating COVID-19 situation across
the globe and particularly for the U.S., thus keeping prices in
a tight range," said Jingyi Pan, market strategist at IG Asia.
"Fears with regards to the weakness across manufacturing
PMIs and more broadly with unemployment, particularly for the
U.S., serve as a sentiment dampener this week."
The South Korean won KRW=KFTC dropped 0.3% to 1,221.40
against the greenback.
South Korea's factory activity fell at its fastest pace in
11 years in March, according to a private survey, while trade
ministry data showed exports slipped as the coronavirus ravaged
the global economy and supply chains. The Singapore dollar SGD= eased 0.3%, while the Malaysian
ringgit MYR= erased early gains to trade 0.2% lower.
Malaysia on Tuesday said its stay-at-home order had
prevented major daily spikes in virus infections, but the World
Bank warned the trade-reliant country's economy would shrink
this year for the first time in more than a decade. The Thai baht THB=TH dipped 0.2%, while the Taiwan dollar
TWD=TP and the Philippine peso PHP= were little changed.
Taiwan raised its estimate to $35 billion for how much it
would spend to help the economy deal with the impact of the
coronavirus. The Indian foreign exchange market was closed for a holiday.
BANK INDONESIA SAYS USD/IDR RATE IS 'ADEQUATE'
Leading declines in the region, the rupiah IDR=ID fell
0.8% to 16,430 a dollar. It has weakened about 15% so far this
year, making it Asia's worst performer.
Bank Indonesia Governor Perry Warjiyo said the central bank
would continue to stabilise financial markets, including the
rupiah's movement, and that the current exchange rate was
"adequate". Warjiyo also asked businesses on Tuesday to meet their U.S.
dollar needs via forward transactions, including in the domestic
non-deliverable forward market, instead of only hitting the spot
market. Foreigners sold $7.1 billion worth of Indonesian bonds last
month as of March 30, the highest in a month since at least
2010.
CURRENCIES VS U.S. DOLLAR
Change on the day at
0457 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 107.760 107.53 -0.21
Sing dlr 1.425 1.4215 -0.26
Taiwan dlr 30.259 30.254 -0.02
Korean won 1221.400 1217.4 -0.33
Baht 32.855 32.8 -0.17
Peso 50.880 50.87 -0.02
Rupiah 16430.000 16300 -0.79
Ringgit 4.322 4.313 -0.21
Yuan 7.089 7.0810 -0.11
Change so far in 2020
Currency Latest bid End 2019 Pct
Move
Japan yen 107.760 108.61 +0.79
Sing dlr 1.425 1.3444 -5.67
Taiwan dlr 30.259 30.106 -0.51
Korean won 1221.400 1156.40 -5.32
Baht 32.855 29.91 -8.96
Peso 50.880 50.65 -0.45
Rupiah 16430.000 13880 -15.52
Ringgit 4.322 4.0890 -5.39
Yuan 7.089 6.9632 -1.77