ANL 32.75 Increased By ▲ 1.28 (4.07%)
ASC 14.38 Increased By ▲ 0.28 (1.99%)
ASL 25.50 Increased By ▲ 1.70 (7.14%)
AVN 95.70 Increased By ▲ 0.95 (1%)
BOP 9.15 Increased By ▲ 0.01 (0.11%)
BYCO 9.98 Increased By ▲ 0.20 (2.04%)
DGKC 135.30 Increased By ▲ 0.50 (0.37%)
EPCL 51.25 Decreased By ▼ -1.00 (-1.91%)
FCCL 24.69 Decreased By ▼ -0.21 (-0.84%)
FFBL 24.50 Decreased By ▼ -0.30 (-1.21%)
FFL 15.42 Increased By ▲ 0.22 (1.45%)
HASCOL 10.72 Decreased By ▼ -0.03 (-0.28%)
HUBC 86.74 Increased By ▲ 1.94 (2.29%)
HUMNL 7.10 Increased By ▲ 0.10 (1.43%)
JSCL 26.59 Increased By ▲ 1.65 (6.62%)
KAPCO 39.20 Increased By ▲ 1.80 (4.81%)
KEL 4.11 Increased By ▲ 0.03 (0.74%)
LOTCHEM 14.72 Increased By ▲ 0.27 (1.87%)
MLCF 46.84 Decreased By ▼ -0.11 (-0.23%)
PAEL 37.10 Decreased By ▼ -0.09 (-0.24%)
PIBTL 11.83 Increased By ▲ 0.15 (1.28%)
POWER 10.50 Increased By ▲ 0.28 (2.74%)
PPL 91.50 Increased By ▲ 0.85 (0.94%)
PRL 25.82 Increased By ▲ 0.52 (2.06%)
PTC 8.90 Increased By ▲ 0.15 (1.71%)
SILK 1.40 Decreased By ▼ -0.01 (-0.71%)
SNGP 41.07 Increased By ▲ 2.57 (6.68%)
TRG 147.70 Increased By ▲ 6.10 (4.31%)
UNITY 30.48 Increased By ▲ 0.73 (2.45%)
WTL 1.54 No Change ▼ 0.00 (0%)
BR100 4,985 Increased By ▲ 72.55 (1.48%)
BR30 25,833 Increased By ▲ 500.7 (1.98%)
KSE100 45,964 Increased By ▲ 370.84 (0.81%)
KSE30 19,236 Increased By ▲ 179.9 (0.94%)
Markets

EM ASIA FX-Most Asian currencies weaken as virus cases jump

The Singapore dollar weakened 0.2pc on the day, while the baht dipped slightly. The Indonesian rupiah weakened
13 Feb 2020
  • The Singapore dollar weakened 0.2pc on the day, while the baht dipped slightly.
  • The Indonesian rupiah weakened 0.2pc to its lowest level in more than a month. It is, however, the top performing currency so far this year.
  • The offshore yuan and onshore yuan slid about 0.2pc each above the 6.98 level.

Most emerging Asian currencies weakened on Thursday as a surge in the number of new coronavirus cases dampened risk sentiment, prompting a flight to safe-haven assets.

The Chinese province at the epicentre of the epidemic, Hubei, reported a record rise in the death toll and health experts warned that it could worsen before getting better.

The offshore yuan and onshore yuan slid about 0.2pc each above the 6.98 level. Analysts called it a knee-jerk reaction to the new numbers on infections and death in China.

Asian currencies have responded to the virus outbreak differently.

Export-focused currencies with greater trade-linkages to China have weakened substantially, with the Thai baht dropping 4.1pc and Singapore dollar slipping 3.2pc so far this year.

However, high-yielding currencies and those perceived to be relatively insulated from economic shocks have benefited, with the Indonesian rupiah and Philippine peso fairly resilient this year.

The Singapore dollar weakened 0.2pc on the day, while the baht dipped slightly.

A senior central bank official said on Thursday Thailand's economy may grow by less than 2pc this year.

The S.Korean won depreciated 0.2pc, while the Malaysian ringgit edged down.

The Indian rupee traded 0.2pc lower. Data on Wednesday showed the country's annual retail inflation accelerated to its highest level in nearly six years, while industrial output unexpectedly contracted.

The Indonesian rupiah weakened 0.2pc to its lowest level in more than a month. It is, however, the top performing currency so far this year.

"From a growth perspective India has kind of lagged and you need an emerging economy of substantial size and growth potential and still offering decent yields. So, the IDR becomes an obvious alternative," said Mahesh Sethuraman, deputy head of global sales trading at Saxo Capital Markets.

"If risk-on assets globally are down, then we may see some IDR weakness which is more structural."

The Taiwan dollar gained as much as 0.2pc, finding some support from the government's plans to spend $2 billion to help cushion the impact on the economy from the coronavirus.