* S.Korea posts steepest economic contraction since 2008 in
Q1
* Investors cautious ahead of euro zone, U.S. PMI data -
analyst
* INR sees best day in more than 2 weeks, up 0.7%
(Adds text, updates prices)
By Anushka Trivedi
April 23 (Reuters) - Most Asian currencies were tepid on
Thursday amid concerns over feeble oil demand and expectations
of dire manufacturing and services survey data out of the United
States and euro zone, while the Indonesian rupiah slid as much
as 1%.
The rupiah fell for a second straight session as the central
bank made its first direct government bond purchase this week to
limit the recent rise in bond yields after several bouts of
heavy selling by foreign investors. The currency is particularly hard-hit due to its yield
differential factor versus the dollar, said Jingyi Pan, a
Singapore-based analyst at IG.
In the broader Asian forex market, investors kept to the
sidelines ahead of the release of April PMI readings for the
United States and euro zone. The data is expected to be
overwhelmingly negative and lay bare the destruction caused by
the coronavirus pandemic.
"Although crude prices had recovered slightly on Wednesday,
it is perhaps nowhere near being out of the woods given the
unchanged demand picture," Pan said.
However, the promise of more U.S. government aid to cushion
the coronavirus-ravaged economy seemed to support sentiment
marginally, with global equities getting a lift.
The South Korean KRW=KFTC won was little changed after the
country reported its steepest economic contraction since 2008 in
the first quarter as self-isolation measures hit consumption and
global trade slumped. The Chinese yuan CNY=CFXS and the Philippine peso PHP=
were flat, while the Singapore dollar SGD= put on 0.2%.
The Indian rupee INR=IN defied trends as it gained 0.7% to
see its best day in more than two weeks.
The near-term outlook for the currency brightened after
Facebook FB.O said on Wednesday it would spend $5.7 billion to
buy a stake in Reliance Industries ' RELI.NS digital arm.
The stake buy "raised hopes that the foreign direct
investment picture in 2021 will not be as bleak as earlier
thought," said Abhishek Goenka, founder and CEO, IFA Global.
TAIWAN DOLLAR
The Taiwan dollar TWD=TP firmed 0.1% against the dollar,
continuing its stellar run as the once-battered currency
recouped all its losses made earlier this year.
Analysts said the currency had gained steadily over the past
few weeks as Taiwan's handling of the coronavirus outbreak
minimised economic disruption and arrested a surge in
infections, instilling confidence among investors.
"Taiwan had notably also seen a jump in electronics exports,
which had been getting a lift with changes in consumer behaviour
around COVID-19 globally," IG's Pan said.
"This is expected to bode well for growth and thus feed the
demand for the Taiwanese dollar."
Earlier this week, the island reported a surprise surge in
March export orders, helped by a boom in telecommuting amid the
virus outbreak. following table shows rates for Asian currencies against
the dollar at 0529 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.750 107.72 -0.03
Sing dlr 1.424 1.4268 +0.22
Taiwan dlr 30.085 30.100 +0.05
Korean won 1231.700 1232.2 +0.04
Baht 32.310 32.34 +0.09
Peso 50.640 50.65 +0.02
Rupiah 15455.000 15400 -0.36
Rupee 76.130 76.67 +0.71
Ringgit 4.352 4.3605 +0.20
Yuan 7.083 7.0833 +0.00
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.750 108.61 +0.80
Sing dlr 1.424 1.3444 -5.56
Taiwan dlr 30.085 30.106 +0.07
Korean won 1231.700 1156.40 -6.11
Baht 32.310 29.91 -7.43
Peso 50.640 50.65 +0.02
Rupiah 15455.000 13880 -10.19
Rupee 76.130 71.38 -6.24
Ringgit 4.352 4.0890 -6.04
Yuan 7.083 6.9632 -1.69