* China cuts interest rate on medium-term lending
* Singapore cuts 2020 growth outlook
* Thai GDP 2019 grows at slowest pace in five years
(Adds text, updates prices)
By Shreya Mariam Job
Feb 17 (Reuters) - Most Asian currencies eked out small
gains against the dollar on Monday as China's central bank cut a
key interest rate to support an economy jolted by the
coronavirus outbreak, helping counter a string of weak economic
data from regional economies.
In a bid to soften the impact from the epidemic that has
killed more than 1,700 people, the People's Bank of China on
Tuesday lowered the interest rate on its medium-term lending.
The move fuelled expectations of a reduction in the
country's benchmark loan prime rate, which will be announced on
Thursday.
"Markets are caught between relief rallies positioning off
declining infections rates accentuated by strong stimulus on one
hand; and on the other hand, hemmed in by underlying caution
given the uncertainty" surrounding the epidemic, Vishnu
Varathan, senior economist at Mizuho Bank said in a note.
The interest rate cut, along with other support measures
outlined by the finance minister on Sunday, pushed the Chinese
yuan CNY=CFXS 0.2% higher, putting it on course to snap three
sessions of declines. The improvement in sentiment also buoyed most other Asian
units, with the Taiwan dollar TWD=TW firming 0.2%.
The Thai baht THB=TH was little changed data showed that
Southeast Asia's second-largest economy grew at its weakest pace
in five years in 2019. However, the Indonesian rupiah IDR= and the Indian rupee
INR=IN ticked lower, weighed down by weak trade data.
Indonesia's trade gap widened sharply in January with the
economy posting a trade deficit of $870 million in the first
month of 2020, compared with an estimate of a $270 million
deficit, according to a Reuters poll. Meanwhile, India's trade deficit rose slightly to $15.17
billion in January, the trade ministry said on Friday.
BUDGET
The Singapore dollar SGD= ticked up 0.1%, shrugging off a
cut to the city-state's 2020 growth and exports outlook on the
expected economic impact from the coronavirus outbreak that
poses a recession risk. Singapore is expected to roll out a hefty package of
measures to cushion the blow from the epidemic when it announces
its budget on Tuesday. Analysts said that the impact from the epidemic has
overtaken the U.S.-China trade war as the predominant risk
facing the Singapore economy.
"Policymakers are also cognizant of the downside growth
risks, so a strong budget response and/or monetary policy
response at the April MPS (Monetary Policy Statement) may help
mitigate and cushion some of the downside risks from here," OCBC
said in a note.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0544 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.820 109.74 -0.07
Sing dlr 1.390 1.3913 +0.12
Taiwan dlr 30.002 30.051 +0.16
Korean won 1182.300 1183 +0.06
Baht 31.160 31.15 -0.03
Peso 50.522 50.54 +0.04
Rupiah 13680.000 13670 -0.07
Rupee 71.430 71.40 -0.04
Ringgit 4.138 4.1405 +0.06
Yuan 6.976 6.9878 +0.17
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.820 108.61 -1.10
Sing dlr 1.390 1.3444 -3.25
Taiwan dlr 30.002 30.106 +0.35
Korean won 1182.300 1156.40 -2.19
Baht 31.160 29.91 -4.01
Peso 50.522 50.65 +0.25
Rupiah 13680.000 13880 +1.46
Rupee 71.430 71.38 -0.07
Ringgit 4.138 4.0890 -1.18
Yuan 6.976 6.9632 -0.18