* IDR at a near 4-week high
* Chinese cenbank cuts medium-term interest rates to record
low
* S. Korea closed for a public holiday
(Adds text, updates prices)
By Anushka Trivedi
April 15 (Reuters) - The Indonesian rupiah strengthened on
Wednesday, a day after the country's central bank held interest
rates steady and unveiled measures to ease the liquidity crunch
stemming from the coronavirus-induced economic stress.
The currency IDR=ID firmed 0.4% to hit a near four-week
high.
Bank Indonesia (BI) on Tuesday after market hours announced
keeping the benchmark rate unchanged at 4.50% and said it is
cutting reserve requirement ratio for commercial banks by 200
basis points, adding that these would help in freeing up about
117.8 trillion rupiah ($7.58 billion) in liquidity. significantly enhances policy transmission and
critically eases liquidity constraints under demand-constrained
conditions and is thus well-suited to ease COVID stresses,"
Mizuho Bank analysts said.
Foreign selling hammered the rupiah this year, which has
long been investors' favourite for its carry trade appeal.
Benchmark Indonesian bond yields ID10YT=RR have risen since
February, but DBS analysts expect them to "have the most room
for catch-up once domestic COVID-19 fears fade."
Most other Asian currencies gained ground on Wednesday,
buoyed by improving sentiment, as the region's top trade partner
China showed signs of recovery and acted to cushion its economy
by cutting key medium-term interest rates to a record low.
The Chinese yuan CNY=CFXS eased slightly after the Chinese
central bank nudged its midpoint fixing to the weak side of
analyst estimates.
A slowdown in coronavirus infection rates at global hot
spots and China logging a better-than-expected trade data on
Tuesday supported buying as well.
However, analysts remained wary of this optimism as "most
of the economic data, at least the hard variety, hasn't captured
the full impact yet," Frederic Neumann, co-head of Asian
economics research at HSBC wrote in a note.
He added that for Asia, watching how swiftly China's economy
can bounce back will stay crucial, with Friday's GDP figures
providing a first real glimpse. Meanwhile, the severity of the
export plunge about to wash over the continent will also stay
key.
Investors await Singapore and India's export data due later
in the week, where both are expected to record a 20% plunge, as
per ING analysts.
The Singapore dollar SGD= lost 0.1% while the Indian rupee
INR=IN , which resumed trade after a holiday, firmed 0.3%.
India extended the nationwide lockdown till May 3 as total
COVID-19 cases exceeded 10,000 but will open up some industries
in rural areas after April 20. The Taiwan dollar TWD=TP , the Thai baht THB=TH and the
Malaysian ringgit MYR=MY firmed between 0.1% and 0.2%.
South Korea's financial markets were closed for a public
holiday.
The following table shows rates for Asian currencies against
the dollar at 0543 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.020 107.2 +0.17
Sing dlr 1.414 1.4133 -0.07
Taiwan dlr 30.000 30.071 +0.24
Baht 32.545 32.615 +0.22
Peso 50.603 50.58 -0.05
Rupiah 15550.000 15610 +0.39
Rupee 76.055 76.27 +0.28
Ringgit 4.325 4.33 +0.12
Yuan 7.053 7.0452 -0.11
Change so far in
2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.020 108.61 +1.49
Sing dlr 1.414 1.3444 -4.94
Taiwan dlr 30.000 30.106 +0.35
Baht 32.545 29.91 -8.10
Peso 50.603 50.65 +0.09
Rupiah 15550.000 13880 -10.74
Rupee 76.055 71.38 -6.15
Ringgit 4.325 4.0890 -5.46
Yuan 7.053 6.9632 -1.27
($1 = 15,550.0000 rupiah)