Yen slips in Asia

The safe-haven yen eased slightly on Wednesday amid signs China was looking to fend off economic threats from the coronavirus, which supported investor confidence as the outbreak's spread appeared to slow.

China posted the lowest daily rise in new infections since January 29, seen by some investors as an indication containment efforts were working. Meanwhile, a Bloomberg report, citing sources, that China is considering cash injections or mergers to bail out airlines hit by the virus also supported appetite for risk.

That pushed the yen to the weaker side of 110-per-dollar and gave a little boost to Asia's export currencies.

China's yuan remained on the backfoot, however, touching a two-week low after the central bank fixed a softer-than-expected trading band, and as investors expected further monetary easing.

"It's a tug of war between wait-and-worry and being relieved that the infection rate is slowing down," said Bank of Singapore currency strategist Moh Siong Sim.

The new coronavirus has caused 2,004 deaths in China and infected more than 74,000 people. Measures to contain it have paralysed the economy and markets remain on edge as the extent of damage to regional commerce and global supply chains becomes clearer.

The yield curve between US three-month bills and 10-year notes inverted overnight, a bearish economic signal, while firmness in exporter currencies is by no means a rebound.

The yen traded 0.2% weaker by the afternoon at 110.05 per dollar. The euro hovered around $1.08, pausing a slide that sent it to a three-year low overnight.

The New Zealand and Australian dollars both advanced by about 0.1%. The Antipodean currencies, heavily exposed to China, have lost more than 4.5% against the dollar this year.