* Weak dollar, vaccine hopes boost Asian FX and equities
* Sensitivity to vaccine news may dull over time -Maybank
* Indonesian rupiah steady ahead of cenbank rate decision
* Bank Indonesia seen cutting rates 3rd time this year -Poll
(Adds text, updates prices)
By Rashmi Ashok
May 19 (Reuters) - Most Asian currencies ticked higher
against a weaker dollar on Tuesday after encouraging data from
an early-stage trial for a coronavirus vaccine lifted sentiment
towards risky Asian assets.
U.S. equities rallied on Monday after drugmaker Moderna
Inc's MRNA.O experimental COVID-19 vaccine appeared safe and
showed promise in a small group of healthy volunteers, according
to very early data. The dollar - usually in strong demand during economic
distress - fell sharply as risk sentiment recovered, giving
added benefit to relatively risky Asian currencies. USD/
Some export-sensitive currencies notched firmer gains, with
the South Korean won KRW=KFTC adding 0.5%. The Thai baht
THB=TH firmed 0.4%, while the Taiwan dollar TWD=TP added
0.15%.
However, gains were muted across the board as wary investors
awaited further information on the potential vaccine, given that
various compounds and medicines touted as cures have failed to
deliver in the past two months.
"With more than a hundred vaccines currently under
development around the globe, we may see more vaccine-related
headlines swinging markets yet," Maybank analysts wrote in a
note.
"Nonetheless, sensitivity to vaccine news may decrease over
time, until more concrete evidence of a successful vaccine ready
for mass application is found."
The Philippine peso PHP= rose 0.2%, while the Malaysian
ringgit MYR=MY and the Indian rupee INR=IN gained 0.4% and
0.2%, respectively. The Chinese yuan CNY=CFXS was flat, while
the Singapore dollar SGD= eased.
RUPIAH STEADY AHEAD OF INTEREST RATE DECISION
The Indonesian rupiah IDR=ID held steady ahead of the
central bank's policy decision due around 0700 GMT.
A Reuters poll showed Bank Indonesia is expected to deliver
this year's third rate cut as it steps up efforts to revive an
economy hit by the coronavirus crisis. However, a significant number of analysts in the poll expect
rates to be held, given that BI Governor Perry Warjiyo has
hinted that the central bank's priority of keeping the rupiah
stable might prevent an early cut. Either way, Maybank analysts expect the decision to have low
impact on the IDR, saying the psychological level of 15,000
against the dollar cited as a plausible year-end forecast by BI
officials earlier seems to be anchoring trading sentiments for
now.
The rupiah has been the worst performer among Asian
currencies this year, having shed 6.2% as of last close,
followed closely by the baht.
The following table shows rates for Asian currencies against the
dollar at 0443 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.400 107.33 -0.07
Sing dlr 1.419 1.4180 -0.04
Taiwan dlr 29.937 29.980 +0.14
Korean won 1226.100 1232.4 +0.51
Baht 31.880 32.02 +0.44
Peso 50.771 50.86 +0.18
Rupiah 14800.000 14820 +0.14
Rupee 75.760 75.91 +0.19
Ringgit 4.345 4.36 +0.35
Yuan 7.110 7.1105 +0.01
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.400 108.61 +1.13
Sing dlr 1.419 1.3444 -5.23
Taiwan dlr 29.937 30.106 +0.56
Korean won 1226.100 1156.40 -5.68
Baht 31.880 29.91 -6.18
Peso 50.771 50.65 -0.24
Rupiah 14800.000 13880 -6.22
Rupee 75.760 71.38 -5.78
Ringgit 4.345 4.0890 -5.89
Yuan 7.110 6.9632 -2.06