* Graphic: World FX rates in 2020 https://tmsnrt.rs/2RBWI5E
* Stock market decline pushes up yen
* Some concern about Chinese coronavirus in Wuhan
* Traders await more details from BOJ, ECB on policy tone
By Stanley White
TOKYO, Jan 21 (Reuters) - The yen pulled ahead and the yuan
fell against the dollar on Tuesday as the spread of a
pneumonia-like virus in China sparked a sudden bout of risk
aversion and sent Asian stocks skidding.
The yuan slipped against U.S. currency in onshore and
offshore trade after a Chinese health expert said the virus can
pass from person to person as the fourth death from the illness
was confirmed.
The outbreak of the disease, which has spread from the
central city of Wuhan, is still in its early stages. However, it
comes right before the peak travel season during the Lunar New
Year holidays, raising the risk that it could spread further.
"There was a sharp fall in Hong Kong stock futures that
rippled through the currency market and pushed up the yen," said
Yukio Ishizuki, foreign exchange strategist at Daiwa Securities
in Tokyo.
"I can understand why some people would say the Chinese
virus is the trigger, but it is still too early to be certain."
The yen JPY=EBS edged higher 0.15% to 110.01 per dollar on
Tuesday.
In the onshore market, the yuan CNY=CFXS fell to 6.8916
per dollar, the lowest level in almost a week. In the offshore
market, it CNH=D3 dropped to 6.8886.
The dollar index against a basket of six major currencies
stood at 97.598, near the highest level in a month.
Traders in Japan were also focused on a Bank of Japan
meeting.
At the two-day rate review that ends on Tuesday, the BOJ is
set to keep its short-term interest rate target at minus 0.1%
and a pledge to guide 10-year government bond yields around
zero. The BOJ is also expected to nudge up its growth forecasts as
improved macroeconomic indicators take some pressure off the
central bank for more stimulus, but traders will scrutinise
governor Haruhiko Kuroda's remarks after the policy decision.
Elsewhere in currencies, the Australian dollar AUD=D3 fell
0.18% to $0.6862 as worries about the Chinese virus hurt
currencies sensitive to risk. The New Zealand dollar NZD=D3
also eased 0.11% to $0.6604.
The euro was locked in a narrow range before a European
Central Bank (ECB) meeting on Thursday where it is expected to
launch a comprehensive review of central bank strategy,
including the ECB's inflation target.
Against the dollar, the euro EUR=EBS traded at $1.1096.
The common currency was also quoted at EURGBP=D3 85.34 pence.
The ECB's first meeting of the year is most likely to launch
a rethink of an inflation goal the bank has failed to meet since
2013.
The scope and scale of the review will be a key focus for
markets given the far-reaching implications for monetary policy.
A slightly brighter tone to data means the ECB's assessment
of the economic outlook will also be watched closely by
investors on Thursday.