EM ASIA FX-Asian currencies fall on lingering trade war worries; China's yuan leads decline

(Adds text, updates prices)

By Patturaja Murugaboopathy

July 19 (Reuters) - Asian currencies dropped against the

dollar on Thursday as concerns over a tariff war between the

United States and China endured, keeping investors cautious on

regional trades.

The dollar retreated from a three-week high against a

basket of major peers but was firm against the regional

currencies.

"When you take the dollar against the euro for example, it

is more or less in range trading. But Asian currencies have

further weakened against the U.S dollar," said Sim Moh Siong, FX

strategist at Bank of Singapore.

"This reflects the concerns about trade tensions."

He added that the public hearing on auto tariffs also kept

the trade tensions alive.

On Thursday, the U.S. Department of Commerce will conduct a

public hearing on its investigation to determine the effect of

imported cars on national security.

The Trump administration launched an investigation in May

into whether imported vehicles and parts posed a national

security threat. Trump has told automakers he was considering

tariffs of up to 25 percent on imported passenger vehicles, up

from 2.5 currently.

China's yuan led the regional losers on the day,

shedding 0.3 percent against the dollar. It fell to a one-year

low after the official yuan midpoint was set below the key 6.7

per dollar level.

"The yuan's weakening has happened in the backdrop of more

stimulus coming up from China. Greater liquidity in the Chinese

markets typically mean its currency would weaken," said Bank of

Singapore's Sim.

The central bank, which oversees monetary policy in China,

is widely expected to deliver more bank reserve ratio (RRR) cuts

in the coming months.

Analysts said yuan's weakness dragged down other Asian

currencies on the day.

The Indian rupee fell 0.26 percent on worries over

higher oil prices and foreign selling.

Foreigners sold about $7 billion worth of Indian bonds and

equities in the first half of 2018, data from stock exchanges

showed. They have sold another $320 million so far this month.

The Indonesian rupiah also edged lower ahead of a

central bank monetary policy decision due later in the day.

The bank is expected to hold its main policy rate at 5.25

percent on Thursday, after raising it by a total of 100 basis

points between May 17 and June 29 to support the weakening

rupiah.

The Thai baht fell to its lowest in more than nine

months. Thailand's finance minister said on Thursday that it

should not rush to increase interest rates as inflation has just

returned to the central bank's target range, and any impact from

a trade war is expected to be small.

The following table shows rates for Asian currencies against

the dollar at 0521 GMT.

CURRENCIES VS U.S. DOLLAR

Change as of 0521

GMT

Currency Latest Previous Pct

bid day Move

Japan yen 112.740 112.83 +0.08

Sing dlr 1.367 1.3646 -0.16

Taiwan dlr 30.619 30.582 -0.12

Korean won 1130.70 1132.3 +0.14

0

Baht 33.380 33.35 -0.09

Peso 53.465 53.49 +0.05

Rupiah 14420.0 14400 -0.14

00

Rupee 68.808 68.62 -0.27

Ringgit 4.057 4.057 +0.00

Yuan 6.740 6.7205 -0.28

Change so far in 2018

Currency Latest End 2017 Pct

bid Move

Japan yen 112.740 112.67 -0.06

Sing dlr 1.367 1.3373 -2.16

Taiwan dlr 30.619 29.848 -2.52

Korean won 1130.70 1070.50 -5.32

0

Baht 33.380 32.58 -2.40

Peso 53.465 49.93 -6.61

Rupiah 14420.0 13565 -5.93

00

Rupee 68.808 63.87 -7.18

Ringgit 4.057 4.0440 -0.32

Yuan 6.740 6.5069 -3.45

(Reporting by Patturaja Murugaboopathy in Bengaluru; Additional

Reporting by Gaurav Dogra;

Editing by Eric Meijer)