* Thai, Philippine central banks likely to ease rates -
analysts
* Inflation slows in Thailand and Philippines
* Bearish bets cut on China's yuan, raised on Indonesia's
rupiah -
Reuters poll
By Anushka Trivedi
March 5 (Reuters) - Most Asian currencies weakened on
Thursday as the dollar recovered, with investors now awaiting
clarity on further monetary easing measures and uncertainty
around coronavirus to reduce before taking on riskier bets.
Upbeat jobs data and the resurgence of Joe Biden as the
potential Democratic nominee for U.S. Presidential elections
offered support to the dollar overnight, although gains were
capped as markets still priced in further monetary easing
FEDWATCH . FRX/
The epidemic is still firmly on the minds of policymakers
and investors, with yields on the benchmark U.S. 10-year
Treasury US10YT=RR slightly above 1%. The Bank of Canada
delivered its biggest rate cut in over a decade. "I think we have to wait for a more sustained recovery in
the overall risk sentiment before we see an influx of inflows,"
said Frances Cheung, head of emerging Asia currency and rates
strategy at Westpac.
She highlighted interest differentials are looking
favourable for local currencies, although overall risk sentiment
needs to improve before it becomes a major factor.
Indonesia's rupiah IDR= weakened 0.4% after firming as
much as 1.2% in the previous session.
Volatility is a key factor for the rupiah, and it would need
to settle down before investment flows back into bonds on a
sustained basis, Cheung added.
Officials in the country have been trying to reassure
markets after Southeast Asia's biggest economy saw heavy
outflows last week. The central bank on Wednesday said it has
"many instruments" that it can use to prop up growth.
"We are cautious of the possibility of Covid-19
(coronavirus) contagion accelerating in Indonesia and its impact
on sentiments," Maybank analyst wrote in a note.
A Reuters poll found investors turning bearish on the rupiah
for the first time since late-October. The Thai Baht THB= dropped 0.4%. Data showed the country's
inflation slowed in February, falling below Bank of Thailand's
target range and missing forecasts. Considering the data, ANZ
sees a higher chance of a rate cut. Inflation also slowed in the Philippines for the first time
in four months in February. The peso PHP= was trading flat.
ING said in a note it expects Bangko Sentral ng Pilipinas
(BSP) to continue to ease monetary policy in the near term,
considering the global growth risks posed by the virus outbreak.
The BSP will hold its next policy review on March 19.
In China, the yuan CNY=CFXS weakened 0.2% after surging in
the previous session. CNY/ The Reuters positioning poll showed
investors reduced their bearish bets on the yuan to their lowest
since early-January last year.
Meanwhile, the South Korean KRW=KFTC won and the Taiwanese
dollar TWD=TP advanced 0.2% and 0.3%, respectively.
Change on the day at 0517 GMT
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct
Move
Japan yen 107.330 107.52 +0.18
Sing dlr 1.385 1.3845 -0.05
Taiwan dlr 29.960 30.038 +0.26
Korean won 1185.100 1187.8 +0.23
Baht 31.470 31.28 -0.60
Peso 50.608 50.62 +0.02
Rupiah 14173.000 14110 -0.44
Rupee 73.420 73.20 -0.30
Ringgit 4.164 4.179 +0.36
Yuan 6.937 6.9260 -0.16
Change so far in 2020
Currency Latest bid End 2019 Pct
Move
Japan yen 107.330 108.61 +1.19
Sing dlr 1.385 1.3444 -2.95
Taiwan dlr 29.960 30.106 +0.49
Korean won 1185.100 1156.40 -2.42
Baht 31.470 29.91 -4.96
Peso 50.608 50.65 +0.08
Rupiah 14173.000 13880 -2.07
Rupee 73.420 71.38 -2.78
Ringgit 4.164 4.0890 -1.80
Yuan 6.937 6.9632 +0.37