* Scepticism over COVID-19 vaccine keeps Asian FX subdued
* Rupiah firms after BI holds rates, C/A deficit narrows
* BOT seen cutting rates, decision due at 0700 GMT
(Adds text, updates prices)
By Rashmi Ashok
May 20 (Reuters) - Asian currencies struggled to find
direction on Wednesday after a report raised questions about the
effectiveness of an early-stage COVID-19 trial vaccine, ending
the risk-on momentum that had boosted the region's riskier
assets in the previous session.
Most stock markets in the region inched down and the few
trading in the black saw only incremental gains, after a subdued
session on Wall Street.
Overnight, medical news website STAT reported that several
vaccine experts had said the effectiveness of Moderna Inc's
MRNA.O coronavirus vaccine could not be determined due to
scanty details released in its preliminary trial result.
Optimism over the potential vaccine did not last long and
market nerves have returned, Robert Carnell, ING's regional head
of research for Asia-Pacific, wrote in a note.
"By this morning, doubts appear to be growing, though it is
worth bearing in mind that this U.S. firm is just one of many
developing a vaccine worldwide, and there are some promising
signs elsewhere," Carnell wrote.
The Indonesian rupiah IDR=ID notched firm gains, rising
about 0.4% to 14,685 against the dollar, after the central bank
unexpectedly stood pat on interest rates, citing the currency's
stability as its key priority. Following the decision, Goldman Sachs analysts reiterated
their bullish stance on IDR bonds, mainly citing lower chances
of rate cuts in the near term in favour of rupiah stability and
the central bank's capacity and willingness to buy bonds.
Further adding to momentum, data showed Indonesia's current
account deficit narrowed in January-March from the previous
quarter, as imports fell and the deficit in services shrank.
Meanwhile, the Thai baht THB=TH was steady ahead of a
monetary policy decision due around 0700 GMT, where the Bank of
Thailand is widely expected to cut its benchmark interest rate
to a new low. The tourism-dependent country has taken a hard hit from the
coronavirus outbreak, with data on Monday showing its economy
contracted at its sharpest pace in eight years in the first
quarter, pushing Southeast Asia's second-largest economy into
recession sooner than expected. following table shows rates for Asian currencies against the
dollar at 0434 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.780 107.68 -0.09
Sing dlr 1.417 1.4160 -0.08
Taiwan dlr 29.936 29.950 +0.05
Korean won 1228.500 1225.3 -0.26
Baht 31.870 31.89 +0.06
Peso 50.680 50.71 +0.06
Rupiah 14690.000 14750 +0.41
Rupee 75.605 75.64 +0.04
Ringgit 4.352 4.346 -0.14
Yuan 7.105 7.1000 -0.07
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.780 108.61 +0.77
Sing dlr 1.417 1.3444 -5.13
Taiwan dlr 29.936 30.106 +0.57
Korean won 1228.500 1156.40 -5.87
Baht 31.870 29.91 -6.15
Peso 50.680 50.65 -0.06
Rupiah 14690.000 13880 -5.51
Rupee 75.605 71.38 -5.59
Ringgit 4.352 4.0890 -6.04
Yuan 7.105 6.9632 -1.99