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EM ASIA FX-Indonesian rupiah drops 1%, oil slump hits ringgit

Published 04/28/2020, 02:38 PM
Updated 04/28/2020, 02:40 PM
© Reuters.
USD/IDR
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USD/MYR
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* Oil prices weigh on Malaysian ringgit
* Concerns of deep global recession loom
* U.S. Fed, ECB meetings in focus

(Adds text, updates prices)
By Shreya Mariam Job
April 28 (Reuters) - Indonesia's rupiah slid nearly 1% on
Tuesday after the government sold $4 billion in bonds to fight
the coronavirus outbreak, while Malaysia's ringgit also fell on
a collapse in oil prices.
Other Asian currencies were mostly range-bound as fears of a
deep economic recession loomed although some countries were
starting to ease curbs imposed on economic and social activity.
The Indonesian government has raised 62.6 trillion rupiah
($4.05 billion) via bonds through private placement and is
negotiating to borrow up to $750 million from development banks
to fund its virus-stricken economy. Meanwhile, with about 9,096 reported coronavirus cases the
world's fourth-most populous country hopes its citizens will be
able to return to normal lives by July. "Concerns over Indonesia's demand slump and the pressures on
the country's fiscal position amid the battle against COVID-19
are set to exert downward pressure on IDR, until the outbreak
has peaked and domestic economic conditions can be eventually
restored," said Han Tan, market analyst at FXTM said.
The rupiah IDR= is leading losses in emerging Asia and is
set to record its worst day in nearly two weeks.
Investors were risk averse with most Asian currencies
slipping against the dollar as persistent worries about
coronavirus infections and a global recession added to the
challenges for policymakers.
"Appetite for Asian assets are expected to remain dampened
until the global economy can make significant and lasting
strides towards a recovery," Tan added.
Meanwhile, an extended slide in oil prices put downward
pressure on the Malaysian ringgit MYR= which dropped 0.3%.
Oil prices slumped again on Tuesday amid concern about
dwindling crude storage capacity worldwide and fears that fuel
demand may only recover slowly. O/R
The Indian rupee INR=IN also weakened about 0.2%.
Reserve Bank of India Governor Shaktikanta Das said on
Monday that meeting the country's fiscal deficit target in the
current financial year was going to be challenging and the
central bank had not yet made a decision on its monetisation -
purchasing government bonds to help finance the deficit.
Meanwhile, the U.S. Federal Reserve meeting ending Wednesday
and the European Central Bank meeting on Thursday remains in
focus.

CURRENCIES VS U.S. DOLLAR
Change on the day at
0543 GMT
Currency Latest bid Previous Pct
day Move
Japan yen 107.220 107.22 +0.00
Sing dlr 1.420 1.4183 -0.13
Taiwan dlr 29.994 30.025 +0.10
Korean won 1224.600 1226.2 +0.13
Baht 32.490 32.47 -0.06
Peso 50.668 50.63 -0.07
Rupiah 15460.000 15310 -0.97
Rupee 76.383 76.24 -0.19
Ringgit 4.365 4.353 -0.27
Yuan 7.086 7.0868 +0.01

Change so far in
2020
Currency Latest bid End 2019 Pct
Move
Japan yen 107.220 108.61 +1.30
Sing dlr 1.420 1.3444 -5.33
Taiwan dlr 29.994 30.106 +0.37
Korean won 1224.600 1156.40 -5.57
Baht 32.490 29.91 -7.94
Peso 50.668 50.65 -0.04
Rupiah 15460.000 13880 -10.22
Rupee 76.383 71.38 -6.55
Ringgit 4.365 4.0890 -6.32
Yuan 7.086 6.9632 -1.73

($1 = 15,460.0000 rupiah)

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