Emerging Asia FX-Slightly lower on dollar rise, oil risks

SINGAPORE, Apr 13 (Reuters) Most Asian currencies weakened on Thursday, undermined by the dollar's rise against the yen and euro after a narrower-than-expected U.S. trade deficit and concern over near-record-high oil prices.

A long Easter holiday weekend in many parts of Asia also contributed to the pressure on traders to unwind their Asian currency holdings as did tension in financial markets over Iran's announcement on Tuesday that it has enriched uranium.

The Asian regionals had an additional negative factor to contend with. China's central bank set a weak mid-point for the yuan's trading band on Thursday at 8.0248 per dollar, quashing expectations that the authorities were encouraging faster gains in the currency ahead of President Hu Jintao's U.S. visit.

However, falls in the Asian currencies were marginal and analysts said the weakness would be fleeting.

Hu's visit to Washington and other countries, starting next week, was bound to bring the focus back to global imbalances and the pressure from the West on China to revalue its currency.

Moreover, next week's data on capital inflows into the United States, the Group of Seven nations' meeting and meetings of the International Monetary Fund late next week could also intensify the betting on further rises in Asian currencies, analysts said.

''This weakness is likely to be temporary. Next week's line-up of major events is simply too large to ignore. Expect the U.S., G7 nations and the IMF to intensify pressure on China and Asia to play its part in adjusting global imbalances,'' analysts at DBS Bank said in a note.

At 0150 GMT, the Taiwan dollar was quoted at 32.57 a dollar, weakening from Wednesday's close of 32.53. The South Korean won hit 962 a dollar, less than a fifth of a percent weaker than the previous session.

Markets in the Philippines and Thailand were closed.

The Indonesian rupiah fell a quarter of a percent and the Singapore dollar was flat, steadying after a drop following the central bank's decision on Tuesday to stick to a gradual tightening policy.

REUTERS SY RAI1020