* Rupiah gains as much as 1.1 pct

* U.S. dollar near 1-wk low on speculation of dovish Fed

* Thai central bank's rate decision due later in the day

(Adds text, updates prices)

By Niyati Shetty

Dec 19 (Reuters) - The Indonesian rupiah and the Indian

rupee led gains among Asian currencies on Wednesday, as oil

prices plunged overnight and the dollar languished near one-week

lows.

The rupiah strengthened as much as nearly 1.1 percent

in early trade but trimmed some gains by 0440 GMT, while the

rupee firmed about half a percent against the

greenback.

Oil prices slumped more than 5 percent on Tuesday on fears

of a supply glut amidst slackening demand, extending a sell-off

that has taken major crude benchmarks down more than 30 percent

from an October peak.

India and Indonesia are net oil importing countries.

"The rupee benefits from lower oil prices since lower oil

prices will ease India's inflationary pressure and also

eliminate market fears about the nation's current account

deficit," said Gao Qi, FX Strategist (EM Asia) at Scotiabank.

The rupiah's improved performance is also expected to give

Indonesia's central bank more leeway to keep interest rates

unchanged at its policy meeting on Thursday.

The rupiah fell to 20-year lows against the dollar this year

on a widening current account deficit before it rebounded

sharply in November due to foreign inflows.

Elsewhere in the region, the Korean won and the

Taiwan dollar gained 0.4 percent and 0.2 percent,

respectively.

The U.S. dollar weakened on rising anticipation the Federal

Reserve will strike a dovish tone at its policy meeting later in

the day, against the backdrop of slowing global growth.

A Reuters poll also showed a significant shift in

expectations toward fewer Fed interest rate rises next year as

risks of a U.S. recession in the next two years jumped.

"Emerging market currencies' appreciation may continue if

the Fed does deliver a dovish sentiment," said Gao.

Meanwhile, the region was also buoyed by some signs of

easing in U.S.-China tensions after U.S. Treasury Secretary

Steven Mnuchin told Bloomberg that the two countries are

planning to hold meetings in January to "document an agreement"

on trade.

The Chinese yuan and the Singapore dollar

were marginally stronger against the greenback.

BAHT FIRMS ON EXPECTED TIGHTENING

The Thai baht strengthened 0.2 as investors await

the central bank's interest rate decision due later in the day.

Bank of Thailand (BOT) is expected to raise its key rate by

25 basis points from near-record lows for the first time since

2011, according to economists polled by Reuters.

Mizuho Bank said in a note: "Given that both growth and

inflation continue to evolve around projection, this reduces the

need for an excessive loose monetary policy on the back of

slightly expansionary fiscal policy ahead of the general

election."

BOT Governor Veerathai Santiprabhob said last month the

policy rate would still be low, even if there is policy

tightening, which will be data-dependent.

Thailand's general election, the first since a May 2014

military coup, is scheduled for Feb. 24

The following table shows rates for Asian currencies against

the dollar at 0440 GMT.

Currency Latest bid Previous day Pct Move

Japan yen 112.280 112.51 +0.20

Sing dlr 1.369 1.3700 +0.08

Taiwan dlr 30.811 30.870 +0.19

Korean won 1124.700 1129.6 +0.44

Baht 32.690 32.74 +0.15

Peso 53.010 52.964 -0.09

Rupiah 14385.000 14495 +0.76

Rupee 70.075 70.44 +0.52

Ringgit 4.178 4.175 -0.07

Yuan 6.890 6.8959 +0.09

Change so far in 2018

Currency Latest bid End 2017 Pct Move

Japan yen 112.280 112.67 +0.35

Sing dlr 1.369 1.3373 -2.31

Taiwan dlr 30.811 29.848 -3.13

Korean won 1124.700 1070.50 -4.82

Baht 32.690 32.58 -0.34

Peso 53.010 49.93 -5.81

Rupiah 14385.000 13565 -5.70

Rupee 70.075 63.87 -8.85

Ringgit 4.178 4.0440 -3.21

Yuan 6.890 6.5069 -5.56

CURRENCIES VS U.S. DOLLAR

(Reporting by Niyati Shetty in Bengaluru

Editing by Jacqueline Wong)