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EM ASIA FX-Most currencies slump amid global dash for U.S. dollar

Published 03/23/2020, 03:13 PM
Updated 03/23/2020, 03:20 PM
© Reuters.
USD/SGD
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USD/MYR
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* Indian rupee plunges to all-time low against dollar
* Onshore Indonesian rupiah sinks to lowest since 1998
* Ringgit poised for eighth straight session of declines

(Adds text, updates prices)
By Shriya Ramakrishnan
March 23 (Reuters) - Most emerging Asian currencies fell
sharply on Monday, with the Indian rupee sinking to an all-time
low, as investors continued hoarding dollars in a bid to stay
liquid amid a worsening coronavirus epidemic.
A rising tide of national lockdowns and restrictions on
travel and daily life has heightened fears of a deep recession,
overshadowing efforts by policymakers to soften the blow.
Despite recent easing measures by the U.S. Federal Reserve,
the dollar has maintained its strength as the uncertainty around
the virus spread and its impact has accelerated the flight to
cash and pushed investors to liquidate holdings across asset
classes. USD/
"We need to see clear signs of government actions around the
world to flatten out the infections curve, make tests available
on a mass scale, and offer reliable data which shows signs of
slowing infection rate. Till then the liquidation wave is likely
to continue," said Mahesh Sethuraman, deputy head of global
sales trading at Saxo Capital Markets.
Among Asian currencies, the Indian rupee INR=IN plunged
1.3% to a record low of 76.14 per dollar, in line with a rout in
the domestic equity market. .BO
Several Indian states have imposed lockdowns until the end
of March, while experts have said the number of cases mirrors
rates during the early stages of the outbreak in other
countries, which then went on to see very rapid growth.
The South Korean won KRW=KFTC shed 1.5%, while the
Singapore dollar SGD= slid 0.7% to 1.459, its weakest since
July 2009.
An unexpected rate cut by the Bank of Thailand at a special
policy meeting over the weekend weighed on the baht THB=TH ,
with the currency declining 1.4% to its weakest since November
2018.
The Malaysian ringgit MYR= slipped for an eighth straight
session, declining 0.3% to a three-year low amid a two-week
partial lockdown in the country.
Malaysia deployed its army to enforce the curb on travel,
while its prime minister said the government might consider
extending movement restrictions by up to two weeks. CONTINUES DOWNWARD SPIRAL
The onshore Indonesian rupiah IDR=ID sank to its weakest
since the depths of the Asian financial crisis in June 1998.
Jakarta's governor on Friday declared a state of emergency
for the next two weeks, while health experts have warned that
Southeast Asia's largest economy likely faces a surge in virus
cases. "Indonesia was always going to be more susceptible in the
scramble for USD liquidity as the unwind of carry trades has
resulted in a dramatic weakness in IDR and with the current
account deficit already at worrying levels, the situation will
only get worse," Saxo Capital's Sethuraman said.
Foreigners had sold $4.8 million worth of Indonesian
government bonds this month by March 18, according to finance
ministry data.

CURRENCIES VS U.S. DOLLAR

Change on the day at
0627 GMT
Currency Latest bid Previous Pct Move
day
Japan yen 109.660 110.8 +1.04
Sing dlr 1.452 1.4491 -0.23
Taiwan dlr 30.358 30.302 -0.18
Korean won 1266.000 1246.5 -1.54
Baht 32.925 32.58 -1.05
Peso 51.320 51.19 -0.25
Rupiah 16550.000 15900 -3.93
Rupee 75.950 75.18 -1.01
Ringgit 4.430 4.4279 -0.05
Yuan 7.095 7.0970 +0.02

Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.660 108.61 -0.96
Sing dlr 1.452 1.3444 -7.44
Taiwan dlr 30.358 30.106 -0.83
Korean won 1266.000 1156.40 -8.66
Baht 32.925 29.91 -9.16
Peso 51.320 50.65 -1.31
Rupiah 16550.000 13880 -16.13
Rupee 75.950 71.38 -6.02
Ringgit 4.430 4.0890 -7.70
Yuan 7.095 6.9632 -1.86



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