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EM ASIA FX-Ringgit leads declines in Asian units, weak oil adds to virus gloom

Published 04/20/2020, 03:29 PM
Updated 04/20/2020, 03:30 PM
© Reuters.
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* Japan reports slump in March exports
* China's central bank cuts benchmark lending rate
* Malaysian ringgit near 4-wk low
* S&P revises Indonesia outlook to 'negative'

(Adds text, updates prices)
By Anushka Trivedi
April 20 (Reuters) - The Malaysian ringgit led declines
among Asian currencies on Monday, as the region's export-focused
economies stood to suffer a severe hit from the coronavirus
pandemic, while Malaysia was also facing a loss in export
earnings from weak oil prices.
The ringgit MYR= lost 0.3% to hit a near four-week low, as
the drop in crude prices would hurt Malaysia's revenues for
liquefied natural gas exports, as the contracts are linked to
oil prices. O/R
Doubts about how and when countries would emerge from
lockdowns once the epidemics in their nations peak also deterred
investors from taking risks.
"Fresh uncertainty that comes with the peak of this horrid
wave of infections could steer investors to the sidelines and
keep new trends from forming for FX," analysts at Maybank in
Singapore said in note. "Currencies may trade in narrower ranges
versus the volatile swings in March."
The Indonesian rupiah IDR= weakened 0.2%. Ratings agency
S&P late on Friday revised Indonesia's economic outlook to
'negative' from 'stable' to reflect the rising financial risks
the country faces as it ramps up government spending in response
to the coronavirus outbreak. The Thai baht THB=TH gained 0.3% to 32.470 against the
dollar. Over the weekend, the country's monarch approved laws
to implement spending measures worth 1.9 trillion baht ($58.50
billion) to cushion the impact of the coronavirus on the
economy. The Chinese yuan weakened by less than 0.1%, as the People's
Bank of China cut its benchmark lending rate as expected on
Monday to reduce borrowing costs for companies and prop up the
coronavirus-hit economy, after it contracted for the first time
in decades.
The South Korean won KRW=KFTC and the Japanese yen JPY=
shed 0.1% and 0.4%, respectively. South Korea is expected to
report on Thursday a marginal expansion in first quarter gross
domestic product, having quickly contained the spread of the
coronavirus during the quarter.
Japan reported its steepest slump in March exports in about
four years. following table shows rates for Asian currencies against
the dollar at 0618 GMT.

CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous Pct Move
day
Japan yen 107.900 107.51 -0.36
Sing dlr 1.423 1.4214 -0.10
Taiwan dlr 30.054 30.102 +0.16
Korean won 1219.000 1217.9 -0.09
Baht 32.480 32.56 +0.25
Peso 50.750 50.79 +0.08
Rupiah 15430.000 15400 -0.19
Rupee 76.645 76.39 -0.33
Ringgit 4.380 4.365 -0.34
Yuan 7.079 7.0725 -0.09

Change so far in 2020
Currency Latest bid End 2019 Pct Move
Japan yen 107.900 108.61 +0.66
Sing dlr 1.423 1.3444 -5.51
Taiwan dlr 30.054 30.106 +0.17
Korean won 1219.000 1156.40 -5.14
Baht 32.480 29.91 -7.91
Peso 50.750 50.65 -0.20
Rupiah 15430.000 13880 -10.05
Rupee 76.645 71.38 -6.87
Ringgit 4.380 4.0890 -6.64
Yuan 7.079 6.9632 -1.64


($1 = 32.4800 baht)

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