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Most emerging Asian currencies firmed on Tuesday, clawing back some of the prior session's heavy losses, as growing US rate-cut expectations took some steam out of the dollar's recent run. Financial markets have ratcheted up bets that the Federal Reserve will be pressed to cut interest rates to cushion a feared hit to economic growth from the coronavirus spread.

A spike in coronavirus cases beyond mainland China sparked an exit from riskier assets on Monday and drove investors to the perceived safety of gold and government bonds. "The ability to regain some composure at softer levels is perhaps just an interim reprieve," said Vishnu Varathan, head of economics and strategy at Mizuho Bank.

"The slight tempering in demand for safe havens, which has also softened the dollar at the margin, is also giving a breathing space for Asian currencies, but it is too premature to call for an emphatic and decisive bottoming."

The onshore Chinese yuan advanced as much as 0.3% to 7.0087 per dollar.

The Malaysian ringgit traded slightly lower, a day after Mahathir Mohamad unexpectedly quit as prime minister, leaving the country in political turmoil.

Mahathir, however, agreed to a request by the Southeast Asian nation's king to stay on as interim premier until a successor is named.

The Singapore dollar strengthened 0.2%, while the Thai baht inched lower.

The Indonesian rupiah weakened 0.2% and was the worst performer, while the Indian rupee was flat.

Market participants will now shift their focus to India's economic growth data for the last quarter of 2019.

A Reuters poll shows growth in Asia's third-largest economy likely accelerated a touch in the October-December period, after its weakest expansion in more than six years in the previous quarter.

Philippine financial markets were closed for a holiday, but the peso was up 0.2% in offshore trade.

The South Korean won gained as much as 0.9% against the dollar, marking its best performance in more than two weeks.

This comes after the country reported a slowdown in new cases of coronavirus infections, and its finance minister on Monday said he had advised the government to start the review and execution of a supplementary budget to cushion the virus impact.

"Caution remains warranted as the Covid-19 development remains fluid," said Christopher Wong, senior FX strategist at Maybank Singapore.

The Bank of Korea is expected to lower its policy rate to a record low on Thursday, the third cut in the current easing cycle, a Reuters poll showed.

Copyright Reuters, 2020

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