* U.S. senators seek to sanction Chinese officials over Hong
Kong
* Most Asian FX under pressure, S. Korean won hurt most
* Yuan steady, detailed stimulus awaited
(Adds text, updates prices)
By Rashmi Ashok
May 22 (Reuters) - Most Asian currencies dipped on Friday
after China said it plans to impose new security legislation on
Hong Kong, drawing threats from the United States and prompting
worries that already strained relations could deteriorate
further.
Details on the legislation are set to be given at the
Chinese parliament's ongoing annual session and has already
drawn a warning from U.S. President Donald Trump that Washington
would react "very strongly" against the attempt to gain more
control over the former British colony. U.S. senators also said they would introduce legislation to
sanction Chinese officials for violating Hong Kong's
independence. Relations were already on a weak footing, with Washington
accusing Beijing of mishandling the virus outbreak and the
recent passing of U.S. legislation that could bar some Chinese
companies from listing on U.S. exchanges. The distraction of China's parliament meeting may see a
delayed retaliation from China, IG market strategist Jingyi Pan
said in a note.
"... the recent moves including the bill passed on Chinese
firms listing rules could altogether feed into further
aggravations down the road, keeping challenging foreign
relations on the pedestal."
Holding out for more support measures from the parliamentary
meet, the Chinese yuan CNY=CFXS held steady at 7.120, while
the dollar =USD found firm footing owing to the spike in
uncertainty.
The trade-sensitive South Korean won KRW=KFTC fell most in
the region, weakening 0.6%. Singapore, a bellwether of global
trade, saw its currency SGD= ease 0.3% while the Taiwanese
dollar TWD=TP was also marginally weaker.
The Philippine peso PHP=PH and Malaysian ringgit MYR=MY
fell by 0.3% each. Indonesian markets remained shut on account
of a local holiday.
INDIAN RUPEE WEAKER ON SURPRISE RBI CUT
The Indian rupee INR=IN opened marginally weaker, but
extended losses to stand at 75.860 against the dollar after the
country's central bank unexpectedly slashed its key policy rate
for a second time this year.
Reserve Bank of India Governor Shaktikanta Das said the
central bank's Monetary Policy Committee had voted unanimously
for the rate reduction, adding that global financial markets
were disconnected from the real economy. Das added domestic economic activity had taken a severe hit
from the country's two-month lockdown starting in late March,
with inflation outlook now becoming complicated and GDP growth
for 2021 likely to remain in negative territory.
The following table shows rates for Asian currencies against the
dollar at 0454 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.410 107.61 +0.19
Sing dlr 1.421 1.4172 -0.25
Taiwan dlr 29.959 29.950 -0.03
Korean won 1238.300 1230.9 -0.60
Baht 31.860 31.83 -0.09
Peso 50.754 50.6 -0.30
Rupee 75.795 75.61 -0.25
Ringgit 4.358 4.344 -0.32
Yuan 7.120 7.1166 -0.05
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.410 108.61 +1.12
Sing dlr 1.421 1.3444 -5.38
Taiwan dlr 29.959 30.106 +0.49
Korean won 1238.300 1156.40 -6.61
Baht 31.860 29.91 -6.12
Peso 50.754 50.65 -0.20
Rupee 75.795 71.38 -5.82
Ringgit 4.358 4.0890 -6.17
Yuan 7.120 6.9632 -2.20