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EM ASIA FX-Trade mixed despite dollar retreat; yuan hits 8-year low

* PBOC sets weak midpoint
    * Ringgit near 10-mth low on hedging-linked dollar bids
    * Malaysia asks foreign banks to refrain from trading
    * Won up; S.Korea expects Trump to toughen Treasury FX

    By Jongwoo Cheon
    SINGAPORE, Nov 16 (Reuters) - Emerging Asian currencies were
mixed on Wednesday as sentiment towards regional units stayed
bearish on rising expectations of a U.S. interest rate hike in a
month's time.
    The recent rout in global bond markets and the dollar rally
took more of a back seat.  
    The Chinese yuan once again hit an eight-year low
as the central bank set a weaker daily guidance rate. 
    Malaysia's ringgit touched a 10-month trough on
hedging-related dollar demand among foreign investors as the
central bank asked foreign banks to refrain from trading
non-deliverable forwards. 
    By contrast, the South Korean won gained as a
foreign exchange official said Seoul was bracing for tougher
scrutiny of its currency management from the U.S. Treasury
Department under a Trump administration.  
    The Taiwan dollar advanced as local shares 
rose and foreign banks cut holdings in U.S. dollars.
    The greenback stepped back against a basket of six
major currencies, while long-term U.S. Treasury yields eased
    Still, the retreat is unlikely to last long as
stronger-than-expected U.S. October retail sales data reinforced
the outlook for a Federal Reserve interest rate hike in
    "Some fatigue is seen setting in, given the huge run-up in
the dollar and steepening of the UST curve in the recent week,"
said Christopher Wong, a senior FX strategist for Maybank in
Singapore, referring to U.S. Treasury yields.
    "Inflation could come faster than expected, and this could
potentially lead to greater impetus for the Fed to raise rates."
    The ringgit fell 0.3 percent to 4.3490 per dollar, its
weakest since Jan. 22, in thin trading.
    The Malaysian currency failed to draw support although most
government bond prices rose.
    Malaysia's central bank has asked foreign banks to refrain
from trading in the offshore non-deliverable forwards market in
the ringgit, according to a letter sent to banks and seen by 
    The won rose earlier as much as 0.5 percent against the
dollar, briefly leading gains among emerging Asian currencies.
    Earlier, a South Korean foreign exchange official said the
country is working to avoid being labelled a currency
manipulator, which could undermine its trading status.
     The comments spurred speculation that South Korea could may
face difficulties stemming the won's appreciation to favour
exports in the future, given Trump's protectionist trade policy
stance, analysts said.
    "The authorities may be reluctant to buy dollars for
intervention, although their recent dollar-selling intervention
gave some room," said Jung Sung-yoon, a foreign exchange analyst
at Hyundai Futures in Seoul.
    South Korea's foreign exchange authorities have recently
intervened recently to limit the won's downside, traders said.
The authorities often step in the market to curb its strength
when it sharply appreciates, according to traders, and have
intervened to limit the won's downside. The authorities often
step into the market to curb the won's strength when it
appreciates sharply. 

    Change on the day at 0457 GMT
  Currency                Latest bid   Previous day  Pct Move
  Japan yen                   109.06         109.22     +0.15
  Sing dlr                    1.4144         1.4130     -0.10
  Taiwan dlr                  31.755         31.870     +0.36
  Korean won                 1167.10        1170.60     +0.30
  Baht                         35.42          35.37     -0.14
  Peso                        49.150         49.170     +0.04
  Rupiah                       13360          13360     +0.00
  Rupee                        67.72          67.74     +0.03
  Ringgit                     4.3450         4.3340     -0.25
  Yuan                        6.8694         6.8565     -0.19
  Change so far in 2016                                      
  Currency                Latest bid  End prev year  Pct Move
  Japan yen                   109.06         120.30    +10.31
  Sing dlr                    1.4144         1.4177     +0.23
  Taiwan dlr                  31.755         33.066     +4.13
  Korean won                 1167.10        1172.50     +0.46
  Baht                         35.42          36.00     +1.63
  Peso                         49.15          47.06     -4.25
  Rupiah                       13360          13785     +3.18
  Rupee                        67.72          66.15     -2.31
  Ringgit                     4.3450         4.2935     -1.19
  Yuan                        6.8694         6.4936     -5.47
 (Reporting by Jongwoo Cheon; Additional reporting by Emily Chan
in TAIPEI; Editing by)