* Dollar hobbled as Fed signals possible rate cuts
* Most regional units advance
* Day dotted by Asia cenbank policy meetings
* Yuan at over 1-mth high
(Adds text, updates prices)
By Rushil Dutta
June 20 (Reuters) - Most Asian currencies edged higher on
Thursday after the U.S. Federal Reserve flagged possible
interest rate cuts later this year at its policy meeting,
putting the dollar on the defensive.
While the Fed stood pat on policy at its Wednesday meeting,
it signalled it was ready to tackle global and domestic economic
risks by slashing rates, possibly as early as next month.
A bulk of Fed policymakers lowered their rate outlook for
the year by roughly half a percentage point.
The dollar index .DXY against a basket of six major
currencies was 0.2% lower at 0349 GMT.
The Fed's more dovish outlook was likely to be one focus of
discussions at several central bank meetings in Asia later in
the day, with investors wondering whether they, too, could open
the door for possible easing later in the year.
While the central banks of Indonesia and Taiwan are expected
to keep rates on hold, respondents surveyed by Reuters see the
Philippine central bank cutting rates.
The Philippine central bank is expected to cut benchmark
rates for the second meeting in a row, the poll showed, though
suggesting it would be a close call as policymakers try to
strike a balance between supporting growth and curbing inflation
pressures.
"Growth in Q2 may also be softer given sluggish exports
dragging manufacturing activities and government expenditure is
unlikely to pick up significantly until June," Mizuho said in
note.
"Furthermore, as credit growth continues to slip on top of
soft growth momentum, the bias is for BSP to cut sooner rather
than later."
The peso PHP= was the only outlier on the day, weakening
marginally against the dollar.
Bank Indonesia is expected to begin cutting rates later this
year.
However, its Taiwan counterpart may wholly bypass the easing
route this year ,according to some economists, who say monetary
conditions in Taiwan are already accommodative due to a slide in
bond yields and a drop in the local currency.
The Taiwanese dollar TWD=TP and the Indonesian rupiah
IDR=ID were 0.18% and 0.77% firmer, respectively.
YUAN: G20 OPTIMISM
The yuan CNY=CFXS climbed to a more than one-month high on
Thursday, its third straight day of advances.
Sentiment was buttressed by signs that China and the United
States could resume trade negotiations after a six-week hiatus.
Earlier this week, U.S. President Donald Trump said he would
meet his Chinese equivalent Xi Jinping at the G20 summit in
Japan later in June and that trade talks between the two nations
were to restart earlier. Analysts do not expect a breakthrough
deal at the summit but said damaging new tariffs could be
postponed if Trump and Xi believe they are making progress.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0349 GMT
Currency Latest bid Previous day Pct Move
Japan yen 107.620 108.09 +0.44
Sing dlr 1.360 1.3630 +0.25
Taiwan dlr 31.110 31.350 +0.77
Korean won 1166.600 1176.1 +0.81
Baht 31.070 31.22 +0.48
Peso 51.750 51.72 -0.06
Rupiah 14240.000 14265 +0.18
Rupee 69.563 69.68 +0.17
Ringgit 4.155 4.172 +0.41
Yuan 6.876 6.9033 +0.39
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.620 109.56 +1.80
Sing dlr 1.360 1.3627 +0.23
Taiwan dlr 31.110 30.733 -1.21
Korean won 1166.600 1115.70 -4.36
Baht 31.070 32.55 +4.76
Peso 51.750 52.47 +1.39
Rupiah 14240.000 14375 +0.95
Rupee 69.563 69.77 +0.30
Ringgit 4.155 4.1300 -0.60
Yuan 6.876 6.8730 -0.05