Currencies inch lower on virus' economic toll

• The Fed on Tuesday broadened the ability of dozens of foreign central banks to access U.S. dollars during the coronavirus crisis

Asian currencies eased on Wednesday as investors braced for a steep economic slump in the wake of lockdowns in many countries to contain the coronavirus' spread, although losses were limited by the U.S. Federal Reserve's move to increase dollar liquidity.

The Fed on Tuesday broadened the ability of dozens of foreign central banks to access U.S. dollars during the coronavirus crisis by allowing them to exchange their holdings of U.S. Treasury securities for overnight dollar loans.

"We are finding this news (Fed's liquidity measures) coming alongside the continued deteriorating COVID-19 situation across the globe and particularly for the U.S., thus keeping prices in a tight range," said Jingyi Pan, market strategist at IG Asia.

"Fears with regards to the weakness across manufacturing PMIs and more broadly with unemployment, particularly for the U.S., serve as a sentiment dampener this week."

The South Korean won dropped 0.3% to 1,221.40 against the greenback.  South Korea's factory activity fell at its fastest pace in 11 years in March, according to a private survey, while trade ministry data showed exports slipped as the coronavirus ravaged the global economy and supply chains.

The Singapore dollar eased 0.3%, while the Malaysian ringgit erased early gains to trade 0.2% lower.

Malaysia on Tuesday said its stay-at-home order had prevented major daily spikes in virus infections, but the World Bank warned the trade-reliant country's economy would shrink this year for the first time in more than a decade.

The Thai baht dipped 0.2%, while the Taiwan dollar and the Philippine peso were little changed.

Taiwan raised its estimate to $35 billion for how much it would spend to help the economy deal with the impact of the coronavirus.

The Indian foreign exchange market was closed for a holiday.

BANK INDONESIA SAYS USD/IDR RATE IS 'ADEQUATE'

Leading declines in the region, the rupiah fell 0.8% to 16,430 a dollar. It has weakened about 15% so far this year, making it Asia's worst performer.

Bank Indonesia Governor Perry Warjiyo said the central bank would continue to stabilise financial markets, including the rupiah's movement, and that the current exchange rate was "adequate".

Warjiyo also asked businesses on Tuesday to meet their U.S. dollar needs via forward transactions, including in the domestic non-deliverable forward market, instead of only hitting the spot market.

Foreigners sold $7.1 billion worth of Indonesian bonds last month as of March 30, the highest in a month since at least 2010.