May 6, 2020 / 6:10 AM / 22 days ago

EM ASIA FX-Asian currencies slip; Chinese yuan weakens on Sino-U.S. tensions

    * Yuan hits weakest level in more than one month
    * The Philippine Q1 GDP expected on Thursday
    * Indonesian cenbank to provide more liquidity

 (Adds text, updates prices)
    By Shreya Mariam Job
    May 6 (Reuters) - Asian currencies weakened on Wednesday,
with the Chinese yuan leading losses as the currency resumed
trade after a long market holiday that saw a further spike in
Sino-U.S. tensions over the origin of the coronavirus pandemic. 
    The yuan lost as much as 0.6% to hit its weakest
level in more than a month before paring losses as the currency
caught up with the frayed sentiment following threats of new
tariffs by the United States in retaliation over the virus
    Meanwhile, new measures by regional central banks eased some
of the pressure on currencies as a slew of bleak data show the
brutal impact of pandemic on their economies.
    The Indonesian rupiah pared losses after the central
bank governor pledged to provide as much liquidity as required
to support economic growth, while vowing to prioritise interest
rate policy to maintain rupiah IDR= stability.
    Southeast Asia's largest economy recorded its weakest pace
in economic growth since 2001 in the first quarter.
    Meanwhile, the South Korean won firmed 0.5% after
the country's central bank said it would suspend auctions of
U.S. dollars from the currency swap deal with the Federal
Reserve given the stabilising market conditions.
    The easing of lockdown measures in different parts of the
world has lifted investor sentiment and supported some riskier
assets in the past few sessions.
    The Philippine peso firmed 0.3%. The country is set
to report its first-quarter economic growth figures on Thursday.
    "Similar to Indonesia, we expect the GDP growth in the
Philippines to start reflecting the impact of the COVID-19
pandemic as it slows sharply to 1% YoY in Q1," a Mizuho note
    Philippines' trade deficit widened slightly in March as both
exports and imports contracted sharply.
    However, the string of weak data is expected to prompt
further stimulus measures from the central bank with an easing
trend inflation likely to provide more room for measures to
boost the economy.

  Change on the day at   0528 GMT                   
  Currency              Latest bid  Previous     Pct
                                         day    Move
  Japan yen             106.360       106.58   +0.21
  Sing dlr              1.417         1.4155   -0.08
  Taiwan dlr            29.904        29.880   -0.08
  Korean won            1223.500      1229.1   +0.46
  Peso                  50.470         50.64   +0.34
  Rupiah                15080.000      15030   -0.33
  Rupee                 75.785         75.63   -0.21
  Ringgit               4.306          4.301   -0.12
  Yuan                  7.087         7.0629   -0.34
  Change so far in                                  
  Currency              Latest bid  End 2019     Pct
  Japan yen             106.360       108.61   +2.12
  Sing dlr              1.417         1.3444   -5.10
  Taiwan dlr            29.904        30.106   +0.68
  Korean won            1223.500     1156.40   -5.48
  Baht                  32.385         29.91   -7.64
  Peso                  50.470         50.65   +0.36
  Rupiah                15080.000      13880   -7.96
  Rupee                 75.785         71.38   -5.81
  Ringgit               4.306         4.0890   -5.04
  Yuan                  7.087         6.9632   -1.75

 (Reporting by Shreya Mariam Job in Bengaluru, Editing by Sherry
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