(Rewrites penultimate paragraph to correct Malaysia GDP
forecast to 4.8% from 4.5%)
* Philippine peso leads gains
* China's Jan factory-gate prices snaps 6 months of y/y
declines
* S. Korean won hits 1-week low
By Shriya Ramakrishnan
Feb 10 (Reuters) - Most emerging Asian currencies firmed on
Monday as Chinese authorities lifted some work restrictions and
implemented measures to support the economy, though concerns
around the virus outbreak persisted due to a mounting death
toll.
Workers began trickling back to offices and factories around
China on Monday as the government eased some restrictions on
working in the wake of the coronavirus epidemic that has now
killed more than 900 people, mostly on the mainland.
The Chinese yuan CNY=CFXS rose 0.2% to 6.988 per dollar,
supported by strong corporate demand for the local currency on
the first working day since the extended Lunar New Year holiday.
CNY/
Jingyi Pan, a market strategist at IG Asia, said Asian
currencies were receiving some respite from an injection of
fresh liquidity into the market by China's central bank and
factory-gate inflation readings coming in line with expectations
in January.
Traders told Reuters that China's central bank injected
about 900 billion yuan ($128.77 billion) into the markets via
reverse repo operations on Monday. It will also provide special
funds for banks to re-lend to businesses combating the virus.
Leading gains in the region, the Philippine peso PHP=
strengthened 0.4% to 50.75 against the greenback.
"The peso has been quite resilient. Perhaps, the economic
linkage to China in relative sense is lower and hence the
downside risks are perceived to be lesser. The growth story in
Philippines has been one of the better ones across the region,"
said Sim Moh Siong, an FX strategist at the Bank of Singapore.
However, Siong warned the resilience in some of the regional
currencies that have been lagging in the sell-off could crack if
concerns surrounding the virus outbreak escalates.
The Taiwan dollar TWD=TP edged up 0.1%, while the Indian
rupee INR= strengthened 0.2%.
Markets will now focus on inflation figures for India due on
Wednesday, which is likely to show inflation rose to a near
six-year peak in January as food prices stayed high.
The Singapore dollar SGD= wavered between gains and losses
during the session. The country on Friday raised its coronavirus
alert level to orange and reported more cases not linked to
previous infections or travel to China. Singapore's government last week said its currency has room
to weaken to accommodate any economic hit. The local unit has
lost about 3.2% so far this year.
The Indonesian rupiah IDR= slipped 0.3%, while the South
Korean won KRW=KFTC weakened 0.2%.
The Malaysian ringgit MYR= edged down 0.1%.
Malaysian Prime Minister Mahathir Mohamad said on Monday the
economy is expected to expand by 4.8% this year, maintaining the
government's forecast as it braces for a potential global
slowdown tied to the novel coronavirus outbreak. Financial markets in Thailand were closed for a holiday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0550 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.770 109.72 -0.05
Sing dlr 1.389 1.3892 +0.03
Taiwan dlr 30.097 30.126 +0.10
Korean won 1188.300 1186.5 -0.15
Peso 50.750 50.94 +0.37
Rupiah 13710.000 13670 -0.29
Rupee 71.345 71.45 +0.15
Ringgit 4.144 4.1405 -0.08
Yuan 6.988 7.0010 +0.19
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.770 108.61 -1.06
Sing dlr 1.389 1.3444 -3.20
Taiwan dlr 30.097 30.106 +0.03
Korean won 1188.300 1156.40 -2.68
Baht 31.270 29.91 -4.35
Peso 50.750 50.65 -0.20
Rupiah 13710.000 13880 +1.24
Rupee 71.345 71.38 +0.05
Ringgit 4.144 4.0890 -1.33
Yuan 6.988 6.9632 -0.35
($1 = 6.9891 Chinese yuan renminbi)