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EM ASIA FX-Most currencies inch up but Indian rupee falls

* Currencies ease off recent declines

* Sentiment still subdued as Fed meet looms

(Adds details, updates prices)

By Ambar Warrick

March 20 (Reuters) - Most Asian currencies edged up on

Tuesday, shaking off recent declines, as market participants

awaited clues from a Federal Reserve meeting on the outlook for

U.S. monetary policy.

The Federal Open Market Committee will begin a two-day

meeting later in the day, and is seen as certain to hike

interest rates for the first time this year.

While a rate hike has been largely priced in by investors,

the focus is now on whether the Fed signals a faster pace of

tightening this year than earlier expected, and if that will

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finally give a boost to the ailing dollar.

"They (Asian currencies) haven't moved too much...tension

over the U.S. is still there, and I think that's reflected on

Asian currencies recently," said Sim Moh Siong, FX strategist at

Bank of Singapore.

" The downtrend that we've seen in the dollar has come to a

pause... I think we're likely to see a rangebound scenario for

the dollar heading into the FOMC meeting later this week."

Regionally, the Taiwan dollar extended gains

against the dollar, rising about 0.16 percent.

A Reuters poll showed that the country's central bank is

expected to stand pat on its key interest rate in a meeting on

Thursday as global demand for the island's electronics appears

to still be firm, a factor that has underpinned economic growth.

The Singapore dollar rose about 0.1 percent.

The Chinese yuan also rose to the dollar, albeit

marginally. Fears of a trade war with the U.S. have pressured

the yuan of late, particularly after President Trump flagged

heavy tariffs on the import of electronics from China.

Parliament elevated a key confidante of President Xi Jinping

to one of the top positions in government on Monday as Beijing

cracks down on riskier financing and a debt build-up that may

pose systemic risks to the world's second-largest economy.

Some traders believe China's central bank may follow a Fed

benchmark rate move with a modest increase in money market rates

after the country's top leaders signalled in parliament that

they will keep risk prevention at the top of their agenda this

year.

INDIAN RUPEE

The Indian rupee bucked the regional trend, easing

about 0.1 percent to the dollar. The rupee has been one of the

worst performers in Asia this year due largely to concerns about

the country's swelling current account deficit.

"India needs capital inflows to fund its current account

deficit which has more-than-doubled to 1.9 Percent of GDP in

April-December, " DBS said in a note.

India's October-December current account deficit widened

sharply from a year earlier, driven by higher imports, data from

the Reserve Bank of India showed last week.

"India’s financing requirements will keep the rupee

vulnerable to rising US rates this year, especially if they

weigh on global equities. Our view remains for the rupee to

depreciate towards 67 this year," DBS added.

The following table shows rates for Asian currencies against

the dollar on Tuesday.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0518 GMT

Currency Latest bid Previous day Pct Move

Japan yen 106.290 106.08 -0.20

Sing dlr 1.315 1.3168 +0.11

Taiwan dlr 29.155 29.201 +0.16

Korean won 1070.200 1071.6 +0.13

Baht 31.190 31.21 +0.06

Peso 52.110 52.1 -0.02

Rupiah 13763.000 13764 +0.01

Rupee 65.238 65.17 -0.11

Ringgit 3.914 3.916 +0.05

Yuan 6.327 6.3308 +0.06

Change so far in 2018

Currency Latest bid End 2017 Pct Move

Japan yen 106.290 112.67 +6.00

Sing dlr 1.315 1.3373 +1.66

Taiwan dlr 29.155 29.848 +2.38

Korean won 1070.200 1070.50 +0.03

Baht 31.190 32.58 +4.46

Peso 52.110 49.93 -4.18

Rupiah 13763.000 13565 -1.44

Rupee 65.238 63.87 -2.10

Ringgit 3.914 4.0440 +3.32

Yuan 6.327 6.5069 +2.84

(Reporting by Ambar Warrick in Bengaluru; Editing by Kim

Coghill)