* Investors await Federal Reserve policy decision
* Indonesia, Taiwan rate decisions expected on Thursday
* Units of net oil importers firm on drop in oil prices
(Adds text, updates prices)
By Shreya Mariam Job
Sept 18 (Reuters) - Most Asian currencies firmed marginally
on Wednesday as investors waited for the U.S. Federal Reserve
rate decision and its outlook for any further easing, while a
drop in oil prices lifted units of large oil importers.
The market largely expects the Fed to cut its benchmark rate
by 25 basis points at its meeting late on Wednesday, marking the
second rate reduction this year. While easing at the September meeting is seen as a
near-certainty, the deep divide among the Fed policymakers on
further monetary stimulus has kept investors on the sidelines.
"The important focus for the markets is whether Fed Chair
Powell will indicate that more cuts are in the pipeline or this
is another mid-cycle adjustment," Singapore-based commercial
bank UOB said in a note.
The dollar index .DXY measuring the greenback against a
basket of six major currencies was little changed.
The Indian rupee INR=IN gained the most in the region
strengthening 0.5% buoyed by easing oil prices. The currency has
taken an over 1% hit since the attacks on Saudi Arabian oil
facilities drove up the commodity's prices.
Saudi Arabia's energy minister said the kingdom will restore
lost oil production by the end of the month. However, the risk
of escalation in Middle East tensions kept markets subdued.
O/R
The Thai Baht THB=TH also firmed marginally. The
Philippine peso PHP= and the South Korean won KRW= , on the
other hand, edged lower.
CENBANK RATE DECISIONS
Taiwan and Indonesian central banks are set to announce
benchmark rate decisions on Thursday amid expectations of
monetary easing by major central banks like the U.S. Federal
Reserve and the Bank of Japan.
Indonesia's central bank is expected to cut its benchmark
rate for the third meeting in a row to support growth. Ahead of
the decision, the rupiah IDR=ID strengthened 0.1%, also
supported by easing oil prices.
Meanwhile, the central bank in Taiwan is expected to leave
its policy rate steady for the thirteenth consecutive quarter
amid signs that the export outlook may be slowly improving.
The country had recently raised its 2019 growth forecast
saying more companies were moving production to the island from
mainland China to avoid the higher tariffs. The Taiwan dollar
TWD=TP strengthened 0.2%.
The following table shows rates for Asian currencies against
the dollar at 0537 GMT.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0537 GMT
Currency Latest bid Previous day Pct Move
Japan yen 108.210 108.12 -0.08
Sing dlr 1.375 1.3739 -0.09
Taiwan dlr 30.969 31.035 +0.21
Korean won 1191.800 1190.7 -0.09
Baht 30.530 30.56 +0.10
Peso 52.240 52.15 -0.17
Rupiah 14080.000 14090 +0.07
Rupee 71.415 71.78 +0.51
Ringgit 4.183 4.181 -0.05
Yuan 7.087 7.0912 +0.07
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 108.210 109.56 +1.25
Sing dlr 1.375 1.3627 -0.90
Taiwan dlr 30.969 30.733 -0.76
Korean won 1191.800 1115.70 -6.39
Baht 30.530 32.55 +6.62
Peso 52.240 52.47 +0.44
Rupiah 14080.000 14375 +2.10
Rupee 71.415 69.77 -2.30
Ringgit 4.183 4.1300 -1.27
Yuan 7.087 6.8730 -3.01