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EM ASIA FX-Most currencies weaken as a rise in regional coronavirus cases hits sentiment

Published 04/06/2020, 02:10 PM
Updated 04/06/2020, 02:20 PM
© Reuters.
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* Singapore reports record daily jump in COVID-19 cases on
Sunday
* Malaysian ringgit weaker for 4th straight day
* Markets in mainland China, India & Thailand closed for
trading

(Adds text, updates prices)
By Anushka Trivedi
April 6 (Reuters) - Most Asian currencies pulled back on
Monday as the rise of coronavirus cases in the region added to
fears of a prolonged economic crisis as governments struggle to
contain the disease.
The gloomy sentiment in Asian foreign exchange markets was
in marked contrast to regional and global equities, which were
buoyed by an apparent slowdown in the coronavirus infection rate
in the major European nations. MKTS/GLOB
Worryingly, the number of new coronavirus cases jumped in
China while Japan prepared to enter a state of emergency to
arrest the virus' spread. Singapore posted its biggest daily
increase in cases on Sunday. The Singapore dollar SGD= was little changed ahead of the
third relief package announcement by its government but the
Japanese yen JPY= remained under pressure against the dollar.
"The past two (Singapore) budgets had perhaps provided
minimal relief in terms of sentiment for the local market
concerned fundamentally with the COVID-19 situation," Jingyi
Pan, market strategist at IG wrote in a note.
Analysts have previously also warned of a sharp contraction
in the Singapore's current quarter GDP.
The U.S. dollar .DXY maintained its safe haven appeal and
firmed against its rivals as investors sought its safety after
the non-farm payrolls report showed massive job losses for the
week ended March 28 and suggested that the pandemic is
shattering the world's biggest economy. USD/
The sentiment spilled over to Asian currency markets as "the
hit to emerging market growth is being compounded by the
slowdown in developed economies and China...EM's dependence on
global portfolio flows is also weighing on some," Barclays
analysts said in a client note.
"Measures taken by core central banks have brought some
stability to markets for now, but sentiment remains vulnerable
and cyclically sensitive assets such as emerging currencies are
likely to remain under pressure," they added.
The Philippine peso PHP= , South Korean won and the
Indonesian rupiah IDR= lost between 0.1% and 0.3%.
Philippines and Indonesia reported a sizable jump in
coronavirus infections over the weekend. The Malaysian ringgit MYR=MY weakened 0.4% and was on its
way to drop for a fourth straight session as the oil exporting
nation's currency was dented by a slump in crude prices.
Oil prices skidded on Monday after Saudi-Russian
negotiations to cut output were delayed and kept oversupply
concerns alive. O/R
Meanwhile, after three consecutive sessions of losses, the
Taiwanese dollar TWD=TP traded a shade higher.
Markets in mainland China, India and Thailand were closed
for a public holiday.


The following table shows rates for Asian currencies against
the dollar at 0510 GMT.

CURRENCIES VS U.S. DOLLAR
Change on the day at
Currency Latest bid Previous day Pct Move
Japan yen 108.860 108.45 -0.38
Sing dlr 1.438 1.4384 +0.03
Taiwan dlr 30.242 30.308 +0.22
Korean won 1232.800 1230.9 -0.15
Peso 50.750 50.71 -0.08
Rupiah 16450.000 16400 -0.30
Ringgit 4.369 4.356 -0.30

Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.860 109.56 +0.64
Sing dlr 1.438 1.3627 -5.24
Taiwan dlr 30.242 30.733 +1.62
Korean won 1232.800 1115.70 -9.50
Peso 50.750 52.47 +3.39
Rupiah 16450.000 14375 -12.61
Ringgit 4.369 4.1300 -5.47


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