* Yuan strength helping Asian FX - analyst
* China reports slowing number of coronavirus cases
* Malaysian ringgit drops to near 2-week low
(Adds text, updates prices)
By Anushka Trivedi
March 10 (Reuters) - Most Asian currencies firmed on
Tuesday, with South Korea's won leading the gains, as rising
hopes of stimulus measures from global central banks and
governments to limit the economic damage from the coronavirus
epidemic put a floor under risky assets.
U.S. President Donald Trump pledged to take "major" steps to
shield the economy against the impact of the coronavirus
outbreak soon after the Federal Reserve stepped up the size of
its fund injections into the battered markets. "It is becoming clear that central banks cannot be the only
game in town and the government needs to step in," Maybank
analysts wrote in a client note, as speculations mounted that
more coordinated measures could be expected across the globe.
Markets worldwide plumbed fresh lows in the previous
session, with the U.S. dollar getting pummelled after a price
war between Saudi Arabia and Russia triggered the biggest daily
rout in oil prices since the 1991 Gulf War. FRX/
Global equities were also battered, as investors fled to
safer assets, pushing the U.S. 10-year Treasury yield
US10YT=RR to a record low, while the Japanese yen JPY=
surged against the dollar. US/
However, the greenback .DXY gained some ground on Tuesday
and Treasury yields ticked higher amid stimulus chatter but
remained below 1%.
A gradual drop in the number of coronavirus cases reported
in China brought a semblance of stability in Asian markets,
keeping the yuan afloat, said Khoon Goh, head of Asia research
at ANZ. "A stable yuan is helping to keep rest of the Asian
currencies well anchored."
The Chinese yuan CNY=CFXS rose 0.2% to 6.934 against the
dollar, lending added support after the country's central bank
pegged the currency CNY=PBOC at a firmer-than-expected level.
The South Korean won KRW=KFTC , whose fortunes are largely
aligned with China's economic stability, strengthened 0.9%. Also
helping sentiment was a dip in the rate of reported coronavirus
infections in the country. The trade-sensitive Taiwanese dollar TWD=TP added 0.6%.
The country reported a surprise jump in February exports late on
Monday.
The Indonesian rupiah IDR=ID gained 0.6% after losing more
than 1% in the previous session.
The country's financial minister comforted markets on
Tuesday by expressing readiness to launch all the policies
implemented during the 2008 financial crisis, a day after
stating that full-year budget deficit would likely widen.
The Malaysian ringgit MYR=MY dropped as much as 0.4% to a
near two-week low against the dollar.
The currency is underperforming its regional peers since
Malaysia is a large LNG exporter and weak oil prices ultimately
tend to hurt exports from the country, ANZ's Goh commented.
For fiscal 2020, petroleum-related revenue was estimated to
be about 50.5 billion ringgit ($11.96 billion), or about 20.7%
of Malaysia's budget. The Indian rupee INR=IN did not trade on account of a
local public holiday.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0508 GMT
Currency Latest bid Previous day Pct Move
Japan yen 104.530 102.34 -2.10
Sing dlr 1.386 1.3839 -0.13
Taiwan dlr 29.950 30.130 +0.60
Korean won 1193.400 1204.2 +0.90
Baht 31.410 31.46 +0.16
Peso 50.450 50.54 +0.18
Rupiah 14310.000 14385 +0.52
Ringgit 4.220 4.217 -0.07
Yuan 6.935 6.9480 +0.19
Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 104.530 108.61 +3.90
Sing dlr 1.386 1.3444 -2.98
Taiwan dlr 29.950 30.106 +0.52
Korean won 1193.400 1156.40 -3.10
Baht 31.410 29.91 -4.78
Peso 50.450 50.65 +0.40
Rupiah 14310.000 13880 -3.00
Ringgit 4.220 4.0890 -3.10
Yuan 6.935 6.9632 +0.41
($1 = 4.2240 ringgit)
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GRAPHIC: The U.S. dollar and 10-Year U.S real yields https://tmsnrt.rs/32WoiRq
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