* Ringgit, rupee gain about 0.2% each
* Baht stays flat after GDP forecast cut
* U.S. Fed meeting outcome awaited
(Adds text, updates prices)
By Aby Jose Koilparambil
Jan 29 (Reuters) - Most Asian currencies firmed slightly on
Wednesday, recovering from falls in the previous session, but
worries over the likely economic impact from the coronavirus
outbreak in China lingered.
Nerves in the market were calmed to some extent after the
World Health Organisation and Chinese President Xi Jinping
expressed confidence in Beijing's ability to contain the spread
of the new coronavirus. The outbreak, which started in the central Chinese city of
Wuhan late last year, has killed 132 people and infected nearly
6,000 so far in China. "Global markets tend to rebound after such outbreaks,
provided that the toll exerted on the global economy is not too
damaging," Han Tan, market analyst at brokerage FXTM, said in a
note.
"A meaningful recovery in the markets, however, could be
months away."
Investors now await the outcome of the U.S. Federal Reserve
meeting later in the day where the Fed is expected to reiterate
its desire to keep rates unchanged at least through this year.
"This status quo fits into the big picture of the Fed
playing it cool given that 'insurance cuts' have been
front-loaded and the economy is in a 'good place'," Vishnu
Varathan of Mizuho Bank said in a note.
The Malaysian ringgit MYR=MY and the Indian rupee INR=IN
gained about 0.2% each.
The South Korean won KRW=KFTC firmed 0.2% after slipping
to its weakest level in three weeks in the previous session.
The won gained despite a Reuters poll showing exports are
expected to fall at a faster pace in January, mainly due to
fewer working days on account of the Lunar New Year holiday and
amid concerns over the economic impact of the coronavirus.
The Singapore dollar SGD= , the Philippine peso PHP= and
the Indonesian rupiah IDR=ID were flat.
In the offshore market, the yuan CNH=D3 strengthened 0.14%
at 6.9555 per dollar. China's onshore markets are closed for the
Lunar New Year holiday and will resume trading on Feb. 3.
Taiwan's financial markets remained closed for holidays.
BAHT FLAT
The Thai baht THB=TH remained little changed after the
finance ministry cut its 2020 economic growth forecast to 2.8%
from a 3.3% projection three months ago, mainly due to weaker
exports. The baht, the region's worst performer so far this year, has
fallen more than the offshore yuan since Jan. 21, when markets
first reacted to the coronavirus outbreak.
Thai authorities have forecast an 18% drop in visitor
arrivals for China this year due to the virus. CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 109.140 109.13 -0.01
Sing dlr 1.358 1.3576 -0.04
Korean won 1175.600 1176.7 +0.09
Baht 30.880 30.88 +0.00
Peso 50.750 50.71 -0.08
Rupiah 13625.000 13630 +0.04
Rupee 71.203 71.33 +0.17
Ringgit 4.078 4.085 +0.17
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.140 108.61 -0.49
Sing dlr 1.358 1.3444 -1.01
Taiwan dlr 30.006 30.106 +0.33
Korean won 1175.600 1156.40 -1.63
Baht 30.880 29.91 -3.14
Peso 50.750 50.65 -0.20
Rupiah 13625.000 13880 +1.87
Rupee 71.203 71.38 +0.25
Ringgit 4.078 4.0890 +0.27
Yuan 6.937 6.9632 +0.38