EM ASIA FX-Asian currencies fall on investor caution after sharp gains

(Adds text, updates prices)

By Patturaja Murugaboopathy

Jan 16 (Reuters) - Asian currencies declined on Tuesday as

investors turned a little cautious of adding fresh positions

after the steep gains in regional currencies this year.

The dollar rose 0.3 percent to 110.85 yen, edging away

from a four-month low of 110.32 yen set on Monday.

"I think Asian currencies are in a phase of consolidation

after the significant gains yesterday," said Chang Wei Liang, an

FX strategist with Mizuho Bank

"In the near-term, the downside in dollar-Asia is likely to

persist, partly reflecting the positive growth environment," Wei

Liang said.

He noted the euro was currently providing a tailwind for the

Asian currencies. The euro was up 0.03 percent against

the dollar at 1.2265.

Technical indicators such as the relative strength index

(RSI) showed the Indonesian rupiah, Taiwan dollar

, Malaysian ringgit, Thai baht and the

Singapore dollar are overbought.

After the currencies' solid gains over the past year, some

central banks are expected to intervene in the foreign exchange

market, weakening currencies to protect exports.

Thailand's central bank said late last week it had taken

action when the baht was rising rapidly, moving to reduce the

impact on businesses from a currency hovering near a 3-1/2 year

high against the US dollar.

The Thai baht edged lower, while the South Korean won

also declined, dipping nearly a quarter percent on

the day.

Strong oil prices, however, propped up the Malaysian ringgit

on Tuesday.

China's yuan slipped despite the People's Bank of

China setting its official yuan midpoint at the highest level in

more than two years.

On Monday the yuan surged to its strongest in more than two

years against the dollar, buoyed by the Bundesbank's decision to

include the yuan in its reserves.

In Europe, comments on Monday from Ardo Hansson, Estonia's

central bank chief and an ECB rate-setter, reinforced the

expectations that the European Central bank (ECB) could end its

2.55 trillion euro bond-buying scheme in one move after

September.

Some analysts said regional currencies were also affected on

the day due to increased expectations the ECB would wind down

its monetary stimulus.

Historically, the regional currencies have benefited from

global liquidity provided by the world's leading central banks.

INDIAN RUPEE

The Indian rupee was down 0.31 percent against the

dollar at 63.683, hit by the recent surge in crude oil prices.

India is the second biggest oil importer in the region after

China.

On Monday, government data showed India's December trade

deficit widened to its highest in more than three years as

higher import costs for gold and crude oil outweighed rising

exports.

A Maybank report on Tuesday said rising oil prices and other

inflationary pressures could induce India's central bank to hike

rates sooner than expected.

"The rupee could be a possible outlier amongst Asian

synchronous recovery," the report said.

The following table shows rates for Asian currencies against

the dollar at 0448 GMT.

CURRENCIES VS U.S. DOLLAR

Change on the day

at 0448 GMT

Currency Latest Previous Pct Move

bid day

Japan yen 110.850 110.52 -0.30

Sing dlr 1.322 1.3207 -0.08

Taiwan dlr 29.544 29.542 -0.01

Korean won 1063.700 1062.7 -0.09

Baht 31.903 31.89 -0.04

Peso 50.435 50.37 -0.13

Rupiah 13334.00 13334.00 0.00

Rupee 63.660 63.49 -0.27

Ringgit 3.954 3.954 +0.00

Yuan 6.440 6.4363 -0.06

Change so far in

2018

Currency Latest End 2017 Pct Move

bid

Japan yen 110.850 112.67 +1.64

Sing dlr 1.322 1.3373 +1.17

Taiwan dlr 29.544 29.848 +1.03

Korean won 1063.700 1070.50 +0.64

Baht 31.903 32.58 +2.12

Peso 50.435 49.93 -1.00

Rupiah 13334.00 13565 +1.73

0

Rupee 63.660 63.87 +0.33

Ringgit 3.954 4.0440 +2.28

Yuan 6.440 6.5069 +1.03

(Reporting by Patturaja Murugaboopathy in Bengaluru; Editing by

Eric Meijer)