EM ASIA FX-Malaysian ringgit up at fresh year high, won firms

(Adds text, updates prices)

By Susan Mathew

Nov 21 (Reuters) - Malaysia's ringgit and South Korea's won

edged up on Tuesday, buoyed by expectations of tighter monetary

policy after recently strong economic growth while most Asian

currencies traded sideways.

Investor risk appetite was largely subdued, with the euro

pressured by political deadlock in Germany. The euro rose

slightly after dropping in the previous session as German

coalition government talks collapsed on the pro-business Free

Democrats withdrawing from negotiations.

The dollar index was lower but still near a one-week

high against its peers.

Meanwhile, U.S. Republicans are not expected to push major

tax cuts through Congress this year, according to a majority of

economists in a Reuters poll, who were also sceptical that tax

reform would provide a significant boost to the economy.

"People are trying to take back their bets. The U.S. dollar

has been coming under pressure because of the tax view, and now

along with this week being short one on holiday there might be

some profit taking," said Lee Jin Yang, macro research analyst

for Aberdeen Asset Management in Singapore.

U.S. markets will be closed on Thursday due to the

Thanksgiving holiday.

"But Asian currencies have been relatively unaffected by

what has been going on in the U.S. and that has leant support to

the currencies."

Gains in the region were led by the won, ringgit

and Taiwan dollar.

The ringgit and the Indian rupee were each more

than 0.12 percent higher. Positive economic growth data from

Malaysia and a Moody's upgrade on India, have kept the sentiment

on these currencies buoyant. The ringgit hit fresh more than

one-year highs on Tuesday.

The Thai baht was the biggest loser in the region,

down 0.2 percent after having led gains in the previous session

on positive economic growth data.

Nath Wongasaroj, corporate treasury trader at Mizuho Bank,

attributed the baht's move lower to "short covering on corporate

demand approaching month-end."

WON AND TAIWAN DOLLAR

The won was up 0.3 percent, its fifth gaining session in

six.

"The South Korean won's recent strength could be attributed

to rising odds of a central bank rate hike in November, easing

geopolitical tensions on the Korean Peninsula and flattened U.S.

Treasury yield curves," Qi Gao, FX Strategist (EM Asia) at

Scotiabank said in a note.

The market consensus is that the BOK will raise interest

rates for the first time in more than six years at its Nov. 30

meeting after the economy achieved its fastest growth for seven

years in the third quarter.

On the equity front, the South Korean benchmark equity index

was up 0.2 percent, while Taiwan's stock index

rose 1.1 percent. The Semiconductor indices for both nations

and, respectively, were up as much as over 1

percent each. Overnight, Wall Street was boosted by chipmakers.

The Taiwan dollar was up as much as 0.2 percent,

its highest in two months.

Data on Monday showed that Taiwan's export order growth was

higher than expected in October, aided by global demand for tech

gadgets. Strong exports have raised confidence the government

can easily meet its upwardly revised 2017 economic growth

forecast of 2.15 percent, giving the central bank room to keep

interest rates steady.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0534 GMT

Currency Latest bid Previous day Pct Move

Japan yen 112.54 112.62 +0.07

Sing dlr 1.3559 1.3566 +0.05

Taiwan dlr 30.063 30.102 +0.13

Korean won 1097 1100.6 +0.37

Baht 32.830 32.754 -0.23

Peso 50.800 50.79 -0.02

Rupiah 13542 13533 -0.07

Rupee 65.02 65.11 +0.13

Ringgit 4.142 4.148 +0.14

Yuan 6.636 6.6300 -0.09

Change so far in 2017

Currency Latest bid End 2016 Pct Move

Japan yen 112.54 117.07 +4.03

Sing dlr 1.3559 1.4490 +6.87

Taiwan dlr 30.063 32.279 +7.37

Korean won 1097 1207.70 +10.14

Baht 32.830 35.80 +9.05

Peso 50.800 49.72 -2.13

Rupiah 13542 13470 -0.53

Rupee 65.023 67.92 +4.46

Ringgit 4.142 4.4845 +8.27

Yuan 6.636 6.9467 +4.69

(Reporting by Susan Mathew in Bengaluru; Editing by Jacqueline

Wong)