EM ASIA FX-Asian currencies creep up as inflation woes dog dollar

By Hanna Paul

Oct 12 (Reuters) - Asian currencies were most higher on

Thursday as uncertainty over the U.S. inflation outlook weighed

on the dollar.

Minutes of the U.S. central bank's latest policy meeting

shed light on growing concerns over the persistently low

inflation in the U.S. economy and raised questions about anthe

interest rate hike expected in December.

Many policymakers admitted that additional tightening or

changes to the monetary policy was dependant on how inflation

pans out for the rest of the year.

The Fed minutes revealed some doubts as to whether weak

inflation is "transitory", Mizuho Daily said in a note.

The dollar index, that checks the dollar against a

basket of currencies, sank to a two-week low.

"Risk appetite is fairly firm and the weakness in the dollar

is giving some support to Asian currencies," said Mitul Kotecha,

head of Asia macro strategy in Barclays.

Among emerging Asian currencies, the Korean won

was helped by further inflows into Seoul's KOSPI share index

, which hit a new high as foreign investors added to

their bets on strong earnings reports later in the week.

The Malaysian ringgit rose marginally after data

showed the country's industrial production in August grew at its

fastest pace since March 2015.

"In Malaysia, some degree of moderation heading into 2018

can be expected. Deleveraging in China, rising trade

protectionism and normalisation of global monetary policies

could keep external demand in check," DBS Group research said in

a note.

The Singapore dollar, the Taiwan dollar and

the Thai baht rose to levels unseen since Sept 26.

The baht also continued to be supported by news that the

country would hold general elections next year after a long

period of military rule.

The Taiwan dollar gained as September exports picked up at

their fastest pace in over seven years.

The Philippine peso, on the other hand, looked

set for its fifth losing session out of six.

Government officials insisted on Wednesday that prospects

for attracting more foreign investment remained bright, but that

failed to lighten the mood after a drastic drop in foreign

equity inflows in the first half of the year.

SINGAPORE DOLLAR

The Singapore dollar rose to its highest in over two

weeks, ahead of a policy announcement from the Monetary

Authority of Singapore on Friday.

The central bank is expected to stand pat on monetary policy

at its semi-annual review as inflation remains subdued,

according to analysts polled by Reuters.

"The market appears positioned for a hawkish tilt ahead of

the policy meeting," DBS Research said in a note, while adding

that it thinks the bank may stick with its forward guidance of

keeping to a neutral stance for an extended period.

The following table shows rates for Asian currencies against

the dollar at 0459 GMT.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0459 GMT

Currency Latest bid Previous day Pct

Move

Japan yen 112.340 112.48 +0.12

Sing dlr 1.353 1.3541 +0.08

Taiwan dlr 30.220 30.232 +0.04

Korean won 1134.000 1135.2 +0.11

Baht 33.100 33.21 +0.33

Peso 51.380 51.35 -0.06

Rupiah 13499.000 13515 +0.12

Rupee 65.140 65.14 +0.00

Ringgit 4.214 4.22 +0.14

Yuan 6.590 6.5882 -0.03

Change so far in 2017

Currency Latest bid End 2016 Pct

Move

Japan yen 112.340 117.07 +4.21

Sing dlr 1.353 1.4490 +7.10

Taiwan dlr 30.220 32.279 +6.81

Korean won 1134.000 1207.70 +6.50

Baht 33.100 35.80 +8.16

Peso 51.380 49.72 -3.23

Rupiah 13499.000 13470 -0.21

Rupee 65.140 67.92 +4.27

Ringgit 4.214 4.4845 +6.42

Yuan 6.590 6.9467 +5.41

(Reporting by Hanna Paul; Editing by Kim Coghill)