* SKorean won and Indonesian rupiah on track for 0.6% weekly
gain
* Markets raise bets on aggressive cut after dovish Fed talk
* Thai baht strengthens after Fitch outlook upgrade
(Adds text, updates prices)
By Rashmi Ashok
July 19 (Reuters) - Most emerging Asian currencies rose
against a weaker dollar on Friday after a dovish speech by a top
Federal Reserve official sealed market expectations of a U.S.
rate cut in July
New York Fed President John Williams said on Thursday that
it was imperative for policymakers to add stimulus early to deal
with low inflation when rates are near zero, instead of waiting
for an economic disaster to unfold. The news drove down the dollar index .DXY to a two-week
low of 96.671 on Thursday, and on Friday there was only a
marginal recovery, giving Asian currencies a fillip.
"The market anticipates at least a 25 basis points at the
end of the July FOMC but after the comments from the policymaker
the probabilities of a deeper rate cut have risen," said Alfonso
Esparza, senior market analyst at OANDA.
Although a later clarification from a Fed representative
said the speech was academic in nature and not about decisions
at the Fed's coming policy meet, that did little to dent the
upbeat mood.
All Asian units were on track to rise for the week, except
for the Indian rupee INR=IN which was marginally lower.
The Korean won KRW=KFTC and the Indonesian rupiah IDR=ID
led gains in the region for the week, with both set to add about
0.6%.
After Bank Indonesia and Bank of Korea's rate cuts on
Thursday, analysts expect further easing among Asian central
banks, emboldened by rising signs that the Fed will remain
dovish in the near future.
"Over the coming few quarters, we can expect more rate cuts
from India, Indonesia, Malaysia, the Philippines and South
Korea," analysts at DBS Research Group said.
BAHT GAINS ON OUTLOOK UPGRADE
The Thai baht THB=TH added 0.4% and was among top
performers on Friday after ratings agency Fitch revised its
outlook on Thailand to "positive" from "stable".
Fitch forecast that external finances will remain robust,
adding "we expect the current account surplus to remain high
relative to peers... supported by tourism inflows and a goods
surplus, despite slowing exports."
The agency said it expects the Thai central bank to keep
rates on hold during 2019.
"The baht's strength relative to regional peers could weigh
on Thailand's export competitiveness, but it is unclear that
this has manifested itself yet, with recent export declines
broadly in line with peers," Fitch said.
The baht is the region's best performer this year, adding
about 5.9% against the dollar.
The following table shows rates for Asian currencies against the
dollar at 0518 GMT.
CURRENCIES VS U.S. DOLLAR
Currency Latest bid Previous day Pct Move
Japan yen 107.570 107.29 -0.26
Sing dlr 1.356 1.3565 +0.01
Taiwan dlr 31.058 31.077 +0.06
Korean won 1173.800 1178.8 +0.43
Baht 30.750 30.88 +0.42
Peso 50.990 50.92 -0.14
Rupiah 13905.000 13955 +0.36
Rupee 68.815 68.95 +0.20
Ringgit 4.108 4.113 +0.12
Yuan 6.876 6.8805 +0.07
Change so far in 2019
Currency Latest bid End 2018 Pct Move
Japan yen 107.570 109.56 +1.85
Sing dlr 1.356 1.3627 +0.46
Taiwan dlr 31.058 30.733 -1.05
Korean won 1173.800 1115.70 -4.95
Baht 30.750 32.55 +5.85
Peso 50.990 52.47 +2.90
Rupiah 13905.000 14375 +3.38
Rupee 68.815 69.77 +1.39
Ringgit 4.108 4.1300 +0.54
Yuan 6.876 6.8730 -0.04
(Editing by Richard Borsuk)