South Korea’s won slumped more than 1%






The Board of Governors’ Meeting (RDG) held by Bank Indonesia on 19-20 February 2020 announced to reduce the BI 7-Day Reverse Repo Rate (BI7DRR) by 25 bps to 4.75%, the Deposit Facility interest rate by 25 bps to 4.00%, and Lending Facility interest rate of 25 bps to 5.50%. BI Governor Perry Warjiyo stated that monetary policy remains accommodative and consistent amidst the prospects of global economic recovery in connection with the occurrence of Covid-19 (CNBC)

 

South Korea’s won slumped more than 1% and the Singapore dollar slid to the lowest in almost three years as traders dumped riskier assets amid growing concern about the spread of the coronavirus. No Asian currency was spared in the rout which was triggered by a spike in confirmed virus cases in South Korea and two fatalities in Japan. The yuan retreated and the Australian dollar, which is seen as a proxy to the Chinese currency, slid to an 11-year low. The Thai baht tumbled to an eight-month low while the Indonesian rupiah and Malaysia’s ringgit depreciated at least 0.5%. The offshore yuan extended a decline past 7 per dollar to trade at its weakest since December. (Bloomberg)

 

 

Source: Danareksa Sekuritas Debt Research
Photo by Janis Rozenfelds on Unsplash