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EM ASIA FX-Rising U.S. yields weigh on most Asian currencies, rupee cuts losses

* India's rupee pares losses after touching another over

1-yr low

* Indonesian rupiah falls, eyes on central bank meet on


* Thai expected to stand pat on rates, baht down

(Adds text, updates prices)

By Nikhil Nainan

May 16 (Reuters) - A surge in U.S. bond yields supported the

dollar on Wednesday and knocked most Asian currencies, with the

Thai baht and the Indonesian rupiah suffering the biggest


A solid rise in U.S. consumer spending numbers sent long

term Treasury yields surging to a seven-year peak of 3.095


"There's permanence building as waves of fresh dollar longs

hit the books," Stephen Innes, head of trading APAC at Oanda,

said in a note, as the greenback hovered around a

five-month high.

Denting risk was news that North Korea called off high-level

talks with Seoul, throwing into question June's planned historic

summit between Kim Jong Un and U.S. President Donald Trump.

Pyongyang denounced U.S.- South Korean military exercises as a


"This will weigh on the Korean reconstruction beneficiaries

that have had a strong run on peace and even reunification hopes

recently," JPMorgan analysts wrote in a note.

The South Korean won fell 0.3 percent to 1077.2

per dollar.

The Indian rupee recovered some losses following

Tuesday's volatile session, as suspected intervention by the

Reserve Bank of India for a second consecutive day stemmed the

rupee's fall.

A senior dealer at a state-run bank, estimated that within

the first 10 minutes the RBI might have sold $300 million to

$400 million proactively to prevent any sharp fall in the rupee.

Some dealers had anticipated that the RBI might refrain from

intervening on Wednesday as they suspected intervention on

Tuesday had failed to stop the rupee hitting its weakest level

since in over a year.

The Karnataka state election that concluded on Tuesday

delivered a hung parliament with India's ruling BJP emerging as

the strongest party. The Karnataka elections are the first major

state election ahead of 2019 general elections.


The rupiah weakened to its lowest point in over

two-and-a-half years at 14,105, a day before a key central bank

policy decision.

Bank Indonesia is expected to hike its benchmark rate for

the first time since 2014 to support the rupiah and stabilise

domestic markets, a Reuters poll showed.

Sean Yokota, head of Asia strategy at Skandinaviska Enskilda

Banken, believes the "hike is priced in and markets are watching

the forward guidance."

"If they hike and say that's enough... the rupiah will keep

weakening," he said. "If they hike and say we are ready to hike

more, that should help the rupiah stabilize."


Thailand's baht weakened 0.5 percent to 32.08 hours

ahead of a central bank meeting that is expected to keep rates

unchanged to support economic growth amid subdued inflation.

"Despite inflation picking up to the fastest in more than a

year... we think Bank of Thailand is still expected to keep

policy rate unchanged for the time being," Mizuho Bank said.

April's annual headline inflation was the highest in 40

months, but was still at the low end of the central bank target



Change on the day at 0528 GMT

Currency Latest bid Previous day Pct Move

Japan yen 110.260 110.34 +0.07

Sing dlr 1.343 1.3446 +0.15

Taiwan dlr 29.859 29.848 -0.04

Korean won 1077.200 1073.8 -0.32

Baht 32.080 31.92 -0.50

Peso 52.330 52.471 +0.27

Rupiah 14105.000 14032 -0.52

Rupee 67.820 68.07 +0.37

Ringgit 3.963 3.954 -0.23

Yuan 6.367 6.3725 +0.08

Change so far in 2018

Currency Latest bid End 2017 Pct Move

Japan yen 110.260 112.67 +2.19

Sing dlr 1.343 1.3373 -0.39

Taiwan dlr 29.859 29.848 -0.04

Korean won 1077.200 1070.50 -0.62

Baht 32.080 32.58 +1.56

Peso 52.330 49.977 -4.50

Rupiah 14105.000 13565 -3.83

Rupee 67.820 63.87 -5.82

Ringgit 3.963 4.0440 +2.04

Yuan 6.367 6.5069 +2.19

(Reporting by Nikhil Kurian Nainan in Bengaluru)