EM ASIA FX-Asian currencies dip after Fed chairman's upbeat remarks lift dollar

(Adds text, updates prices)

By Patturaja Murugaboopathy

July 18 (Reuters) - Asian currencies weakened on Wednesday

as Federal Reserve Chairman Jerome Powell's optimistic comments

on the U.S. economy strengthened expectations of more interest

rate hikes this year and lifted the dollar.

In closely watched congressional testimony on Tuesday,

Powell said he saw the United States on course for years more

steady growth, while largely discounting the risks associated

with a trade war.

The dollar rose as high as 113.08 against yen on

Wednesday, its strongest since January 9.

"Fed chief Powell's testimony sent the dollar stronger

overnight. And as a result of that, we have seen Asian

currencies on the back foot today," said Khoon Goh, ANZ's head

of Asia research, based in Singapore.

He added that regional currencies' weakness was also due to

the unwinding of long positions after the previous days'

advances.

The South Korean won saw the Asian currencies'

biggest decline of the day, shedding 0.35 percent against the

dollar.

On Wednesday, the South Korean finance ministry cut its

economic growth forecast for this year, citing a weak labour

market recovery and global trade tensions.

Indonesia's rupiah dropped 0.24 percent to extend

its losses to about 6 percent for the year.

The Indonesian central bank's move to raise its main policy

rates by a total of 100 basis points in six weeks, between May

17 and June 29, has not supported the rupiah much.

Bank Indonesia is expected to pause its monetary tightening

cycle on Thursday, a Reuters poll showed, but it will continue

to focus on stability of the rupiah.

Malaysia's ringgit fell for the second consecutive

day, pulled down by weak crude oil prices. Energy exports make

up a significant portion of Malaysia's economy.

Chinese yuan's weakened on the day, adding to the

regional currencies' negative mood, analysts said.

INDIAN RUPEE

The Indian rupee fell just 0.1 percent on the day,

a much smaller decline than some other regional currencies.

While the rupee has been affected by concerns over India's

trade deficits and high inflation, the country's reduced

dependency on trade revenue will shore it up this year, some

analysts said.

All Asian currencies have declined this year in the fallout

from the U.S.-China trade war.

"The Indian rupee will not be much impacted as India's

exports to GDP share is very low and India is not as exposed to

global supply chains as other Asian countries," said ANZ's Goh.

"That is why we have seen the Indian rupee, in more recent

times, not weakening as much as the currencies of Korea and

Taiwan for example."

The following table shows rates for Asian currencies against

the dollar at 0550 GMT.

CURRENCIES VS U.S. DOLLAR

Change as of 0550

GMT

Currency Latest Previous Pct

bid day Move

Japan yen 113.010 112.85 -0.14

Sing dlr 1.368 1.3646 -0.21

Taiwan dlr 30.549 30.516 -0.11

Korean won 1129.90 1124.1 -0.51

0

Baht 33.340 33.24 -0.30

Peso 53.430 53.39 -0.07

Rupiah 14415.0 14365 -0.35

00

Rupee 68.560 68.45 -0.16

Ringgit 4.055 4.0445 -0.26

Yuan 6.710 6.7035 -0.09

Change so far in

2018

Currency Latest End 2017 Pct

bid Move

Japan yen 113.010 112.67 -0.30

Sing dlr 1.368 1.3373 -2.21

Taiwan dlr 30.549 29.848 -2.29

Korean won 1129.90 1070.50 -5.26

0

Baht 33.340 32.58 -2.28

Peso 53.430 49.93 -6.55

Rupiah 14415.0 13565 -5.90

00

Rupee 68.560 63.87 -6.84

Ringgit 4.055 4.0440 -0.27

Yuan 6.710 6.5069 -3.02

(Reporting by Patturaja Murugaboopathy in Bengaluru

Editing by Eric Meijer)