EM ASIA FX-Asia FX down in July as U.S. GDP adds to Fed rate hike views

* Won leads Asia FX monthly losses

* Baht to suffer worst month in 14 years

* Taiwan dollar to see monthly slide, Q2 growth 3-year low

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, July 31 (Reuters) - Most emerging Asian

currencies eased on Friday, poised for monthly losses in July as

faster U.S. economic growth in the second quarter boosted

expectations the Federal Reserve may raise interest rates as

soon as September.

The Malaysian ringgit stayed near a 17-year trough

with bond prices lower as growing political fallout linked to

Prime Minister Najib Razak and the debt-ridden state fund 1MDB

hurt sentiment.

Indonesia's rupiah fell to a fresh low since August

1998 on month-end dollar demand from importers. Thailand's baht

hit a six-year low and is set for its worst month in 14

years as a sluggish economy continued to drive foreign investors

out of the country.

U.S. economic growth accelerated in the second quarter on

solid consumer spending. The expansion fell short of forecast

but indicated a steady momentum that could pave the way for the

Fed to raise interest rates this year.

By contrast, Asian economies are slowing down. Taiwan's

economic growth slowed more sharply than expected to a

three-year low in the second quarter, hurt by a collapse in

exports.

The sluggish regional economic outlook, along with views of

higher U.S. borrowing costs, are expected to keep denting

emerging Asian currencies, analysts said.

"Markets have priced in a higher expectation of a September

rate hike after the U.S. growth data, but the probability is

still below 40 percent," said Sean Yokota, head of Asia strategy

for Scandinavian bank SEB in Singapore.

"In any case, I think Asian FX will weaken further. Data in

the U.S. is getting better whereas data in Asia continues to

disappoint, led by China. Asians will suffer until the export

cycle picks up, which we aren't seeing yet."

WON, BAHT LEAD JULY LOSSES

Emerging Asian currencies were set to again report monthly

losses in July, led by the South Korean won and the

baht.

The won has slid 4.6 percent against the dollar throughout

this month, which would be the largest monthly loss since

September 2011, Thomson Reuters data showed. A slowdown in

Asia's fourth-largest economy spurred capital outflows.

The baht has lost 3.9 percent so far this month, which would

be the biggest monthly depreciation since March 2001, according

to Thomson Reuters data.

Thailand's top government officials including a deputy prime

minister expressed their preference for a weaker currency to a

rate cut to shore up the economy.

That caused some foreign investors to sell local bonds,

which they had bought before on expectations of rising bond

prices.

The ringgit has fallen 1.1 percent so far in July as the

central bank was spotted intervening to prop up the

worst-performing Asian currency hit by growing political

tensions.

Malaysia's international reserves lost $5 billion in the

first half of the month, central bank data showed, as the

authorities stepped up efforts to support the currency after a

graft scandal.

"The key concern is that FX reserves continue to decline. At

some point BNM will no longer be able to continue providing

support to the currency," said Khoon Goh, senior FX strategist

for ANZ in Singapore, referring to Bank Negara Malaysia.

A Wall Street Journal report earlier this month said that

investigators in the 1MDB probe had traced $700 million in funds

deposited into bank accounts belonging to the prime minister.

Reuters has not verified the report.

The Singapore dollar has lost 1.9 percent so far

this month as the city-state's economy unexpectedly shrank in

the second quarter. Taiwan's dollar has slid 1.5

percent as foreign investors were net sellers in its stock

market for a second consecutive month on the sluggish economy.

The Philippine peso has shed 1.2 percent

throughout July, while the rupiah has fallen 1.1 percent.

"The Fed's eventual lift-off may translate into an 'our

lift-off, your problem' scenario for emerging markets in an

environment of weak growth and still accommodative central

banks," said Emmanuel Ng, a foreign exchange strategist with

OCBC Bank, in a client note.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0515 GMT

Currency Latest bid Previous day Pct Move

Japan yen 123.95 124.14 +0.15

Sing dlr 1.3730 1.3752 +0.16

Taiwan dlr 31.542 31.601 +0.19

Korean won 1168.75 1168.40 -0.03

Baht 35.14 34.94 -0.57

Peso 45.65 45.62 -0.07

Rupiah 13483.00 13465.00 -0.13

Rupee 64.03 64.04 +0.02

Ringgit 3.8170 3.8160 -0.03

Yuan 6.2098 6.2096 -0.00

Change so far in 2015

Currency Latest bid End prev year Pct Move

Japan yen 123.95 119.66 -3.47

Sing dlr 1.3730 1.3260 -3.42

Taiwan dlr 31.542 31.718 +0.56

Korean won 1168.75 1099.30 -5.94

Baht 35.14 32.90 -6.37

Peso 45.65 44.72 -2.04

Rupiah 13483.00 12380.00 -8.18

Rupee 64.03 63.03 -1.56

Ringgit 3.8170 3.4965 -8.40

Yuan 6.2098 6.2040 -0.09

(Additional reporting by Satawasin Staporncharnchai in BANGKOK;

Editing by Jacqueline Wong)