EMERGING MARKETS-Asian currencies fall on Middle East jitters, Bank Indonesia holds rates

By Himanshi Akhand

June 18 (Reuters) - Most Asian currencies slipped on Wednesday as tensions between Israel and Iran remained in focus, while Indonesia's rupiah and stocks were little-changed after the central bank held rates steady, as expected.

Bank Indonesia governor Perry Warjiyo said at a press conference that the central bank would continue to monitor for room to further support growth, while maintaining inflation within target and keeping the rupiah stable.

The rupiah IDR=, which has appreciated 4% from the all-time low on April 9, was last marginally down 0.1% at 16,290 per dollar. Stocks .JKSE fell 0.7%.

"Steady U.S. rates and geopolitical risks might provide a brief respite to the greenback, limiting the room for further rupiah appreciation. After a temporary pause in June, we expect BI to stay on an easing path, with the door open for another 50bp cuts this year," said Radhika Rao, senior economist at DBS.

Other regional currencies were broadly weaker as the conflict between Iran and Israel entered a sixth day, with U.S. President Donald Trump calling for Iran's unconditional surrender and warning U.S. patience was wearing thin.

The Israeli shekel ILS= was last marginally up at 3.5020 per dollar. It fell 0.4% on Tuesday.

The MSCI index of emerging market currencies .MIEM00000CUS edged down 0.2%. The Malaysian ringgit MYR= and the Indian rupee INR=IN inched 0.1% lower each against a wobbly dollar.

The Philippine peso PHP= fell 1.2% to its lowest level in two months.

The peso has performed well for most of this year, which is making it vulnerable as negative factors, including higher oil prices and concerns of a rate cut by the central bank, start weighing in, said Alan Lau, FX strategist at Maybank.

The Bangko Sentral ng Pilipinas (BSP) is expected to lower its key interest rate by 25 basis points on Thursday.

The Taiwanese dollar TWD=TP was flat, and the South Korean won KRW=KFC inched up 0.2%.

Other regional stock markets were mixed. Manila .PSI and Singapore .STI shares fell 0.5% and 0.4%, respectively.

Taipei .TWII and Seoul .KS11 equities rose 0.7% each, driven by gains in technology stocks.

Markets were also awaiting the Federal Reserve's policy decision later on Wednesday, with expectations for the central bank to stand pat on rates.

HIGHLIGHTS:

** Singapore MAS survey shows economists cut GDP, inflation forecasts and see more easing

** Malaysia scores record flows as bond investors favour Asia