* Indonesia rupiah strengthens, cenbank policy decision on
Tuesday
* The Philippine cenbank governor signals further rate cuts
* Interactive graphic tracking global spread of coronavirus:
open
https://tmsnrt.rs/3aIRuz7 in an external browser
(Adds text, updates prices)
By Nikhil Nainan
April 13 (Reuters) - The Indonesian rupiah was one of two
emerging Asian currencies to drift higher on Monday in the
run-up to a policy decision, while broader markets grappled with
the economic damage from the coronavirus that pushed many
countries to enforce shutdowns.
While a small majority expect Bank Indonesia (BI) to keep
its benchmark rate on hold on Tuesday, the central bank is
likely to weigh the pressures forced upon the country by the
pandemic and that of the volatility it has caused to its
currency IDR= . The International Monetary Fund had warned last month that
the pandemic has already driven the global economy into
recession and countries must respond with "very massive"
spending. "Rate cuts alone are not going to matter. Demand in the
system cannot come back because of a rate being cut by 25 or 50
basis points. You need measures that will basically keep the
system running and not collapse," said Sunil Kalra, a portfolio
manager at LC Beacon Global Fund based in Singapore.
The Indonesian rupiah advanced 0.1% against the U.S. dollar
at 15,785 on Monday, its strongest level since March 19. The
decision comes on the back of a 4% gain last week, its first
weekly gain in four, after the government sold U.S. dollar bonds
of $4.3 billion and as the BI secured a $60 billion repo line
with the U.S. Federal Reserve.
Elsewhere, the South Korean won KRW=KFTC sharply weakened
0.9% as the impact on the trade-reliant economy from the
pandemic was evident when exports in the first 10 days of April
dived 18.6% from a year earlier. Despite an agreement by major producers for the biggest ever
output cut, oil prices still remain at a little over $30 a
barrel, a far cry from what they were earlier this year. O/R
India, a major oil importer, would ordinarily stand to
benefit from low prices, but investors are also noting a likely
extension to the country's 21-day lockdown that is due to end on
Tuesday. India's rupee INR=IN weakened 0.2% to 76.4, roughly around
the weakest level it has ever been at.
"In the medium run, this oil price means a lot to India.
Probably one of the biggest oil price drops in a long time, and
that's going to have a massive impact on the Indian rupee,"
Kalra said.
While an official federal government announcement is yet to
be made, several states in Asia's third-biggest economy have
independently said they would extend the lockdown.
In other parts of the region, the Singapore dollar SGD=
fell 0.2% against the greenback, while the Philippine peso
PHP= weakened 0.4%. Over the weekend, the Philippines' central bank governor
signalled more cuts in its policy interest rate to cushion the
economic blow of the coronavirus. To date, the bank has slashed
its interest rate PHCBIR=ECI by a total of 75 basis points to
3.25%. VS U.S. DOLLAR AS AT 0524 GMT
Currency Latest Previous Pct
bid day Move
Japan yen 107.910 108.46 +0.51
Sing dlr 1.417 1.4132 -0.23
Taiwan dlr 30.087 30.103 +0.05
Korean won 1219.800 1208.8 -0.90
Baht 32.740 32.66 -0.24
Peso 50.640 50.43 -0.41
Rupiah 15,785 15,800 +0.10
Rupee 76.400 76.29 -0.15
Ringgit 4.318 4.305 -0.30
Yuan 7.047 7.0375 -0.13
Change so far in 2020
Currency Latest End 2019 Pct
bid Move
Japan yen 107.910 108.61 +0.65
Sing dlr 1.417 1.3444 -5.09
Taiwan dlr 30.087 30.106 +0.06
Korean won 1219.800 1156.40 -5.20
Baht 32.740 29.91 -8.64
Peso 50.640 50.65 +0.02
Rupiah 15785.00 13880 -12.07
0
Rupee 76.400 71.38 -6.57
Ringgit 4.318 4.0890 -5.30
Yuan 7.047 6.9632 -1.19