MOST Asian currencies were edging upwards on Thursday, with the Malaysian ringgit gaining the most, after the U.S. Federal Reserve delivered an expected 25 basis points (bps) rate hike, with market participants reading Fed Chair Powell's tone as more "moderate".

       The U.S. Federal Reserve has raised rates for the 11th time in the last 12 times that it has met and kept the benchmark overnight interest rate in the 5.25%-5.50% range.

       It will now continue to assess the possibility of more rate hikes in future. "From a rates perspective, the FOMC outcome was already well telegraphed," analysts from DBS said in a research note,

       "A 25bps hike with the door open for more, but with Fed Chair Powell not quite insisting on further hikes makes for a more moderate tone."

       The dollar index, which measures the strength of the greenback against six major rivals, dropped almost 0.2% to 100.91 at 0645 GMT.

       A rate peak in the United States will lead investors to lean on risk-sensitive, higher-yielding Asian assets, while cementing stances of some Asian banks which had opted for a pause.

       Thailand's central bank is likely to hike its key policy rates by 25 basis points for the last time in August, in tandem with the Fed, and is set to pause until 2025, as the outlook on price pressures and economic growth continue to be uncertain, according to a Reuters poll.

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       Earlier this week, Bank Indonesia had held its rates steady for the sixth straight month as expected, while keeping its current growth projections for 2023 unchanged in a range of 4.5% to 5.3%.

       Moreover, investors will also look for additional cues on monetary policy from the European Central Bank later in the global day, where it expected that the central bank will hike for the ninth straight time.

       Back in the region, the ringgit triumphed over other Asian peers, rising as much as 0.5%, hitting a two-week high to trade at 4.526 per dollar.

       Other currencies such as the Thai baht, Singapore dollar, Philippines peso and the Indonesian rupiah were trading between 0.1% and 0.2% higher.

       "The lower-yielding currencies in Asia had suffered at the hands of a hawkish Fed. But this does not necessarily mean they would rebound more now that the Fed is done," Joey Chew, Head of Asia FX Research at HSBC said in a research note.

       "As for the higher-yielding currencies in Asia (like IDR), we think these will remain resilient." Separately, most Asian equities gained, with shares in Seoul, Singapore, Taiwan and Thailand rising between 0.5% and 0.7%.

       HIGHLIGHTS:

       ** Indonesia's benchmark 10-year bond yield rises TO 6.265%

       ** Thailand's political flux keeps investors on edge

       ** UPDATE 3-Singapore's UOB positive on net interest income after Fed hike - Reuters