* Graphic: World FX rates tmsnrt.rs/2egbfVh * Graphic: Foreign flows into Asian stocks tmsnrt.rs/3lKhL5I * All eyes on Fed policy * Indonesian stocks fall further ahead of BI meeting * Manila stocks slip after three days of gains By Shashwat Awasthi Sept 16 (Reuters) - Most emerging Asian currencies inched higher on Wednesday but moves were limited as investors looked to the U.S. Federal Reserve meeting for signs on how it will execute a policy shift allowing for greater tolerance towards inflation. The Taiwanese dollar stood out with a 0.7% rise but most others saw muted action, with the Singapore dollar, Philippine peso and the Thai baht all marginally firmer against the U.S. dollar, which has seen four months of weakness. While the chances of the U.S. central bank delivering actual new policy steps on Wednesday are seen as minimal, analysts expect at the very least the Fed's newest economic projections to point to an extended period of lower interest rates. "While these (messages) are all expected to keep the greenback subdued, there are plenty of items on the table the market could pick up on," said Jingyi Pan, a strategist with retail trading platform IG. "Any lack of dovish guidance is not expected to be taken well by the market." Indonesia's rupiah, which has weakened 2% so far this month, firmed for the second straight session ahead of Bank Indonesia's monetary policy meeting on Thursday, where the central bank is expected to hold off cutting interest rates further to avoid placing any additional pressure on the local currency. Jakarta stocks meanwhile slid for the second consecutive day, giving up more of the 5% gains made since late last week. Bank Indonesia (BI) has been in focus among foreign investors as the government considers increasing its involvement in the country's monetary policy framework. The central bank has intervened to support the rupiah as concerns about central bank independence weighed on a currency already under pressure from an economy sliding into recession. Indonesia's finance minister on Tuesday forecast a steeper-than-expected contraction in Southeast Asia's largest economy in the third quarter, after coronavirus curbs were reinstated in the capital of the country with the highest COVID-19 death toll in the region. Maybank analysts said in a note that BI would likely continue to intervene to stabilise the rupiah if needed, limiting any weakness in the currency. Philippine stocks, which have shed nearly a quarter of their value this year as the pandemic hammered the economy, slipped 0.8%. The Philippines' rising COVID-19 death toll has raised doubts about the government's recent decision to significantly relax social distancing norms. Malaysia's markets were closed for a holiday. HIGHLIGHTS ** Indonesian 10-year benchmark yields are up 3.2 basis points at 6.945% ** Top losers on the Jakarta stock index include Inter Delta down 6.88%, Trisula International down 6.86% and Pollux Investasi Internasional down 6.73% ** In the Philippines, top index losers are SM Investments down 2.56%, Megaworld down 2.19% and Universal Robina down 1.98% Asia stock indexes and currencies at 0351 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.15 +3.17 0.21 -0.64 China +0.13 +2.81 -0.24 7.80 India 0.00 -3.08 0.00 -5.31 Indonesia +0.30 -6.15 -0.83 -19.70 Malaysia 0.00 -0.94 0.00 -3.62 Philippines +0.06 +4.75 -0.89 -23.68 S.Korea +0.25 -1.68 0.09 11.29 Singapore +0.10 -1.13 0.43 -22.54 Taiwan +0.70 +3.19 1.24 8.40 Thailand +0.03 -4.04 0.01 -18.58 (Reporting by Shashwat Awasthi in Bengaluru; Editing by Patrick Graham and Ana Nicolaci da Costa)
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