EM ASIA FX-Risk aversion dents Asia FX; cautious ahead of Fed

* Singapore dollar down after weak May exports

* Rupiah falls on dividend-linked dollar demand

* Baht slides on dollar-short covering

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, June 17 (Reuters) - Most emerging Asian

currencies extended losses on Tuesday as a deepening conflict in

Iraq and a gas dispute in Ukraine hurt risk sentiment, while

investors stayed cautious ahead of the U.S. Federal Reserve's

policy meeting later in the day.

The rupee fell to a seven-week low as the risk of

higher oil prices from the insurgency in Iraq continued to fuel

concerns over inflation in India.

Singapore's dollar came under further pressure from

disappointing May exports data. The Indonesian rupiah

eased on dividend-linked dollar demand.

Oil prices remained near nine-month highs after militants

from the Islamic State of Iraq and the Levant seized a large

swathe of northern Iraq and threatened to capture a key oil

refinery.

Russia cut off gas to Ukraine on Monday in a dispute over

unpaid bills that could disrupt supplies to the rest of Europe

and set back hopes for peace between the former Soviet

neighbours.

"We have various factors such as a Fed meeting to see

near-term corrections in Asian currencies," said Yuna Park, a

currency and bond analyst at Dongbu Securities in Seoul.

"Short-term investors may want to book more profits from

Asia, probably due to strong U.S. economic data, even though I

don't expect any surprise from the Fed meeting," Park added.

U.S. manufacturing output rose in May and factory activity

in New York state accelerated sharply this month, increasing

hopes of a strong rebound in economic growth this quarter.

The Fed is expected to announce a further reduction in its

monthly bond purchasing programme after a two-day policy meeting

starting later on Tuesday, but most market participants do not

expect an interest rate hike until mid-2015.

SINGAPORE DOLLAR

The Singapore dollar eased 0.2 percent to 1.2529 per the

U.S. dollar, its weakest since June 6.

Singapore's non-oil domestic exports unexpectedly fell in

May on weak shipments of electronics and pharmaceuticals to its

key markets, indicating the city-state may not be benefiting yet

from a recovery in developed economies.

"Today's outcome is consistent with our view that the SGD

NEER will at best be stable and USD/SGD will go slightly higher

in order for Singapore to maintain its exports competitiveness,"

said Frances Cheung, head of Asian rates strategy at Credit

Agricole CIB in Hong Kong, referring to the Singapore dollar

nominal effective exchange rate.

The city-state's currency, however, is seen securing a chart

support line around 1.2530, a 55-day moving average, analysts

said.

It also has the 50.0 percent Fibonacci retracement at 1.2529

of its appreciation in June.

RUPIAH

The rupiah slid on dollar demand linked to dividend payments

to foreign investors, traders said.

Spot rupiah came under further pressure from its weakness in

non-deliverable forwards.

The official Jakarta Interbank Spot Dollar Rate, which

Indonesia's central bank launched last year in an effort to

manage exchange rate fluctuations, was fixed at 11,863 per

dollar, weaker than the previous day's 11,814.

A Jakarta-based currency trader said spot rupiah may weaken

past 11,900 due to the uncertainty over the upcoming

presidential election and dollar demand from importers.

BAHT

The Thai baht slid as foreign and local investors

covered short positions in the dollar with subdued trading ahead

of the Fed policy meeting.

Foreign investors were net sellers of Bangkok shares in the

previous five consecutive sessions, unloading a combined net

3.34 billion baht ($103.25 million) during the period.

Still, some foreigners bought local bonds, limiting the

baht's depreciation, traders said.

Foreign investors appeared to have switched from stocks to

bonds, keeping an eye on the political situation, they added.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0445 GMT

Currency Latest bid Previous day Pct Move

Japan yen 101.97 101.84 -0.13

Sing dlr 1.2522 1.2507 -0.12

Taiwan dlr 30.002 30.061 +0.20

Korean won 1022.70 1020.10 -0.25

Baht 32.42 32.36 -0.19

Peso 43.96 43.92 -0.08

Rupiah 11870.00 11815.00 -0.46

Rupee 60.36 60.16 -0.34

Ringgit 3.2280 3.2250 -0.09

Yuan 6.2322 6.2250 -0.12

Change so far in 2014

Currency Latest bid End prev year Pct Move

Japan yen 101.97 105.28 +3.24

Sing dlr 1.2522 1.2632 +0.88

Taiwan dlr 30.002 29.950 -0.17

Korean won 1022.70 1055.40 +3.20

Baht 32.42 32.86 +1.36

Peso 43.96 44.40 +1.00

Rupiah 11870.00 12160.00 +2.44

Rupee 60.36 61.80 +2.39

Ringgit 3.2280 3.2755 +1.47

Yuan 6.2322 6.0539 -2.86

($1 = 32.35 baht)

(Additional reporting by Satawasin Staporncharnchai in BANGKOK;

Editing by Jacqueline Wong)