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EM ASIA FX-Most Asian units slip as virus spread pushes investors to safer assets

Published 02/21/2020, 02:46 PM
Updated 02/21/2020, 02:48 PM
© Reuters.  EM ASIA FX-Most Asian units slip as virus spread pushes investors to safer assets
USD/IDR
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DX
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* S.Korean won set to snap two weekly gains
* Malaysian ringgit set for biggest weekly slump in over 3
yrs
* Indian financial markets closed for a holiday

(Adds text, updates prices)
By Shreya Mariam Job
Feb 21 (Reuters) - Most Asian currencies slipped on Friday,
with the South Korean won leading declines, as a sharp rise in
new coronavirus cases outside mainland China sent investors
scurrying to safer assets such as the U.S. dollar.
The South Korean won KRW=KFTC fell 0.6% after the country
reported 52 new cases of the fast-spreading virus and data
showed exports to China in the first 20 days of February slumped
3.7%. "Continued rise in contagion could warrant a re-assessment
of the macro fallout on Korea in terms of both supply chain
disruption and inbound tourism," Maybank said in a note.
The won has lost 2% this week, the most among its peers, and
was on track to snap two weekly gains as the outbreak upends
global growth and supply chains.
In Taiwan, one of the economies most exposed to the
outbreak, export orders in January fell by their steepest in
nearly seven years, data showed on Thursday.
The Taiwan dollar TWD=TP weakened 0.3% and was set to lose
more than 1% for the week.
The rising economic toll of the virus and its rapid spread
outside China prompted investors to seek shelter in the dollar
=USD , which hovered near a three-year peak hit overnight.
The Malaysian ringgit MYR=MY slipped 1.4% for the week,
its biggest weekly drop since November 2016.
The Thai baht THB=TH lost 0.5% and was on track to post a
weekly drop of 1.4%. Southeast Asia's second-largest economy is
among those hit hardest by the outbreak, prompting the country's
central bank to lower growth forecasts earlier this week.
Meanwhile, the Indonesian rupiah IDR= slipped 0.3%. The
country's central bank lowered its key policy interest rate on
Thursday, in a bid to cushion the blow from the epidemic, which
also pushed Bank Indonesia to cut this year's economic growth
outlook.
Financial markets in India were closed for a holiday.

CURRENCIES VS U.S. DOLLAR
Change on the day at 0555 GMT
Currency Latest bid Previous day Pct Move
Japan yen 111.940 112.11 +0.15
Sing dlr 1.400 1.4006 +0.03
Taiwan dlr 30.358 30.254 -0.34
Korean won 1206.200 1198.7 -0.62
Baht 31.630 31.47 -0.51
Peso 50.770 50.76 -0.02
Rupiah 13745.000 13700 -0.33
Ringgit 4.193 4.183 -0.31
Yuan 7.033 7.0230 -0.14

Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 111.940 108.61 -2.97
Sing dlr 1.400 1.3444 -3.99
Taiwan dlr 30.358 30.106 -0.83
Korean won 1206.200 1156.40 -4.13
Baht 31.630 29.91 -5.44
Peso 50.770 50.65 -0.24
Rupiah 13745.000 13880 +0.98
Rupee 71.650 71.38 -0.38
Ringgit 4.193 4.0890 -2.55
Yuan 7.033 6.9632 -0.99

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