Singapore says currency has room to weaken as virus hits economy.

Singapore's central bank said on Wednesday that its currency has room to weaken as an outbreak of coronavirus hits its economy but added that its current policy stance remains appropriate.

The surprise statement by the Monetary Authority of Singapore (MAS) sent the Singapore dollar SGD= to its lowest levels since October, making it the day's worst performing currency in Asia even as Thailand unexpectedly cut rates.

The Singapore dollar was down around 0.8 percent against the U.S. dollar, its biggest daily fall in about two years SGD.

Singapore has warned that the epidemic will hit growth, just as its economy was showing signs of recovering from last year's weakest growth in a decade.

The city-state has reported 24 cases of new coronavirus, while the death toll from coronavirus in China neared 500 on Wednesday.

Issuing a statement in response to media queries, MAS said its closely-guarded currency gauge, called NEER, had been trading at the top of its policy band, and therefore, has room to depreciate to accommodate any economic hit.

"There is sufficient room within the policy band to accommodate an easing...in line with the weakening of economic conditions as a result of the outbreak of the 2019 novel coronavirus in China and...