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EM ASIA FX-Most Asian currencies weaken as virus death toll rises

Published 01/28/2020, 02:11 PM
Updated 01/28/2020, 02:16 PM
© Reuters.  EM ASIA FX-Most Asian currencies weaken as virus death toll rises
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* S.Korean won weakens 0.8% to near 3-week low
* Thai baht declines to over 5-month low
* China extends Lunar New Year holidays to Feb. 2

(Adds text, updates prices)
By Niyati Shetty
Jan 28 (Reuters) - Most Asian currencies slid against the
dollar on Tuesday, with the South Korean won leading the
declines, as the rising death toll from the fast-spreading
coronavirus battered appetite for risk.
The won KRW=KFTC slipped as much as 0.8% to its lowest
level in nearly three weeks as investors returned from a Lunar
New Year break.
Asian financial markets extended a global selloff on fears
that the new coronavirus, which has claimed 106 lives so far in
China and has spread to more than 10 countries, could hit growth
in the world's second-largest economy. South Korea, Malaysia, Thailand, Singapore and Taiwan are
among the nations that have confirmed cases of the virus.
"Across the Asia-Pacific, the downward pressure on local
currencies will continue until we see some good news emerging in
the Wuhan virus fight," Jeffery Halley, senior market analyst at
OANDA, said in a note.
He, however, said Asian currencies were "well placed to
weather the storm for some time to come" as they had rallied
before the viral outbreak.
Trading in the onshore yuan CNY=CFXS was closed for the
Lunar New Year holidays, which have been extended by three days
to Feb. 2 as China takes further steps to curb the spread of the
virus.
In the offshore market, the yuan CNH=D3 was at 6.9722
versus the dollar, recovering slightly from Monday when it hit
6.9900, the lowest since Dec. 30.
Malaysia's rinngit MYR= slipped up to 0.5%, while the
Indonesian rupiah IDR= declined 0.4%. The Thai baht THB=TH
skidded 0.3% to its weakest since August 2019.
The Philippine peso PHP= and the Indian rupee INR=IN
each firmed 0.2%. There have been no confirmed cases of the
virus in the Philippines and India. Meanwhile, a slump in oil prices also supported the rupee.
India is among the world's top importers of oil and easing crude
prices bode well for the country's trade deficit. O/R
Taiwan's financial markets were closed for holidays.


The 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 108.970 108.89 -0.07
Sing dlr 1.357 1.3574 +0.01
Korean won 1176.900 1168.7 -0.70
Baht 30.770 30.69 -0.26
Peso 50.810 50.89 +0.16
Rupiah 13650.000 13600 -0.37
Rupee 71.330 71.44 +0.15
Ringgit 4.082 4.0645 -0.43

Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 108.970 108.61 -0.33
Sing dlr 1.357 1.3444 -0.95
Taiwan dlr 30.006 30.106 +0.33
Korean won 1176.900 1156.40 -1.74
Baht 30.770 29.91 -2.79
Peso 50.810 50.65 -0.31
Rupiah 13650.000 13880 +1.68
Rupee 71.330 71.38 +0.07
Ringgit 4.082 4.0890 +0.17
Yuan 6.937 6.9632 +0.38


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