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EM ASIA FX-Units set to post weekly losses as virus fears deepen

Published 01/31/2020, 02:48 PM
Updated 01/31/2020, 02:56 PM
© Reuters.  EM ASIA FX-Units set to post weekly losses as virus fears deepen
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USD/PHP
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* World Health Organization declares global emergency
* Health body but stops short of China trade restrictions
* Philippine peso, Taiwan dollar gain on the day
* South Korean won slips to worst level in 7 weeks

(Adds text, updates prices)
By Aby Jose Koilparambil
Jan 31 (Reuters) - Most Asian currencies were set to record
weekly losses on Friday as risk sentiment took a hit on fears
that the rapidly-spreading coronavirus in China could hurt its
economy.
Amid persisting concerns about the outbreak, which has
killed more than 200 people so far in China and infected
thousands globally, the World Health Organization (WHO) declared
a global emergency on Thursday. Most major Asian economies count China as a crucial trade
partner.
The epidemic could temporarily reduce China's gross domestic
product to 5%, while trade and tourism are likely to weigh on
GDP for Australia and much of Asia, ANZ Research analysts said
in a note.
However, some markets drew relief as the WHO stopped short
of recommending any restrictions on trade and travel.
The Philippine peso PHP= gained about 0.3%, but was poised
for a 0.2% weekly loss and 0.5% monthly fall.
Likewise, the Taiwan dollar TWD=TP appreciated about 0.2%
to mark its best session in more than two weeks, but was set for
a 0.7% weekly fall and 0.4% monthly loss.
The Taiwan dollar had slid nearly a percent on Thursday as
investors priced in the virus impact while returning from a
five-day Lunar New Year break.
The Indian rupee INR=IN was little changed a day ahead of
the federal budget announcement as the country faces its worst
economic slowdown in a decade. The currency is set to depreciate
about 0.2% for the week.
The Thai baht THB=TH , the Singapore dollar SGD= , the
Indonesian rupiah IDR=ID and the Malaysian ringgit MYR=MY
were all flat, but were on track to post steep weekly losses.
The Chinese offshore yuan CNH= was little changed at
6.9789, but was 0.7% weaker for the week.
Onshore markets were closed on account of the extended Lunar
New year holidays and will resume trading on Feb. 3.
An official survey showed growth in China's factory activity
faltered in January, as export orders fell, while the virus
outbreak added to risks. WEAKENS
The South Korean KRW=KFTC slipped up to 0.6% to its
weakest level in seven weeks and was set for a fifth consecutive
session of losses.
South Korea's December factory output exceeded forecasts as
soaring chip production fuelled industrial activity, but the for
the whole of last year, it fell 0.7%, in its worst reading since
1998. Change on the day at 0608 GMT
Currency Latest bid Previous day Pct Move
Japan yen 109.030 108.95 -0.07
Sing dlr 1.363 1.3615 -0.07
Taiwan dlr 30.232 30.277 +0.15
Korean won 1189.500 1185 -0.38
Baht 31.140 31.11 -0.10
Peso 50.865 50.98 +0.23
Rupiah 13650.000 13640 -0.07
Rupee 71.503 71.48 -0.03
Ringgit 4.087 4.0855 -0.04

Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 109.030 108.61 -0.39
Sing dlr 1.363 1.3444 -1.33
Taiwan dlr 30.232 30.106 -0.42
Korean won 1189.500 1156.40 -2.78
Baht 31.140 29.91 -3.95
Peso 50.865 50.65 -0.42
Rupiah 13650.000 13880 +1.68
Rupee 71.503 71.38 -0.17
Ringgit 4.087 4.0890 +0.05
Yuan 6.937 6.9632 +0.38


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