* S. Korean won drops to near six-month low
* Political uncertainty sparks selling pressure on ringgit
* Indonesia c.bank intervenes in FX, bond markets
(Adds text, updates prices)
By Shriya Ramakrishnan
Feb 24 (Reuters) - Emerging Asian currencies posted steep
losses against the dollar on Monday as a rapid surge in
coronavirus infections and deaths outside mainland China
heightened fears of a pandemic and sent investors fleeing to
safe-haven assets.
Italy, South Korea and Iran reported a sharp rise in
infections over the weekend. South Korea put the country on high
alert, while Italy began sealing off the worst affected towns
and banning public events after a spike in the number of virus
cases to above 150. The South Korean won KRW=KFTC plunged 0.8% to a near
six-month low against the greenback, in tandem with sharp falls
in local equities. .KS11
South Korea's vice finance minister Kim Yong-beom said a set
of measures would be announced soon to boost exports,
investments and domestic demand and that any "herd-like"
speculative moves in currency markets would be stemmed.
"There's a sobering realisation that this could really
impact hard and fast... truly the notion of China sneezing and
everyone catching a cold, that becomes a real fright for anyone
watching this," said Vishnu Varathan, head of economics at
Mizuho Bank, in Singapore.
Against a basket of currencies =USD , the dollar crept back
toward an almost three-year peak touched last week amid a
broader risk-aversion. USD/
The Indonesian rupiah IDR= , which has held up better so
far this year against its Asian peers due to its carry trade
appeal, fell 0.9% to its weakest level in more than a month
during the session despite an intervention by the central bank.
Indonesia's central bank has intervened in the spot
currency, domestic non-deliverable forward and bond markets amid
outflows related to fears of the spread of COVID-19 in South
Korea, an official told Reuters on Monday. The Chinese yuan CNY=CFXS inched lower against the dollar,
while the Singapore dollar SGD= fell 0.3%.
The Thai baht THB=TH dropped as much as 0.5% to hit a near
nine-month low, with investors largely shrugging off an
unexpected rise in exports for the trade-reliant economy in
January. TURMOIL GRIPS MALAYSIAN RINGGIT
Malaysian Prime Minister Mahathir Mohamad has submitted his
letter of resignation to the king, his office said on Monday,
amid talk of forming a new governing coalition. The uncertainty added pressure on the ringgit MYR= , with
the local unit sliding 0.8% to 4.22 per dollar, its weakest
level in five-and-a-half months.
Yields on the country's 10-year government bonds MY10YT=RR
also rose 6.1 bps to 2.972, as of Monday's open.
Malaysian bonds, long a favourite with foreign investors,
have seen net heavy inflows between November and January.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0616 GMT
Currency Latest bid Previous day Pct Move
Japan yen 111.570 111.57 +0.00
Sing dlr 1.403 1.3981 -0.31
Taiwan dlr 30.440 30.403 -0.12
Korean won 1219.300 1209.2 -0.83
Baht 31.735 31.61 -0.39
Peso 50.960 50.89 -0.14
Rupiah 13890.000 13760 -0.94
Rupee 71.838 71.65 -0.26
Ringgit 4.220 4.188 -0.76
Yuan 7.035 7.0265 -0.13
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 111.570 108.61 -2.65
Sing dlr 1.403 1.3444 -4.14
Taiwan dlr 30.440 30.106 -1.10
Korean won 1219.300 1156.40 -5.16
Baht 31.735 29.91 -5.75
Peso 50.960 50.65 -0.61
Rupiah 13890.000 13880 -0.07
Rupee 71.838 71.38 -0.64
Ringgit 4.220 4.0890 -3.10
Yuan 7.035 6.9632 -1.03