* Rupiah falls for third straight day * Singapore stocks hit lowest since June 4 * Graphic: World FX rates tmsnrt.rs/2RBWI5E * Asian stock markets: tmsnrt.rs/2zpUAr4 By Shashwat Awasthi June 16 (Reuters) - Indonesia"s rupiah led minor losses amongst Asian currencies on Wednesday, as markets settled in to await the outcome of the U.S. Federal Reserve"s policy meeting that could determine the interest rate path for central banks across Asia. The rupiah weakened for the third straight session, down 0.2% on the eve of the Indonesian central bank"s policy meeting, as the U.S. dollar index hovered near one-month highs. The firm dollar also kept the Philippine peso and the Thai baht 0.1% lower, while the Singapore dollar and Malaysian ringgit were flat. Given that developing countries benefit from a weaker dollar and lower U.S. Treasury yields, investors are hoping for some clarity from the Fed in terms of its policy tightening path. A hawkish message could well set off market volatility across emerging markets. "Once the road-map of the Fed"s exit becomes clearer, and initial market repercussions have been digested, it will open the door for policy adjustments across the region," said Frederic Neumann, co-head of Asian economics research at HSBC. While Asian central banks have so far kept policy settings loose, minutes of a May policy meeting by the Bank of Korea released on Tuesday showed that a majority of its board favoured reining back stimulus. Citi analysts said in a note they expected South Korea to hike its 0.5% rate earlier than anticipated, starting from October, noting that faster post-COVID-19 economic normalisation this year "would generate stronger domestic demand and more demand-side inflation". The won, however, didn"t react much and Citi said markets had now priced two rate hikes by end-March 2022. But Seoul"s KOSPI equity index hit a record high as foreigners appeared to buy the economic recovery message and were net buyers of shares. Indonesia and Taiwan are expected to leave rates unchanged at record lows this week. Strategists at Singapore"s DBS bank warned that any steepening of the U.S. rates curve stemming from the Fed meeting carried risks for Asian bonds, which have recently received robust inflows. "Rates/bonds of countries that run current account deficits, relatively more dependent on external funding, higher foreign bond ownership and still reliant on central bank bond purchases could see relatively more bear-steepening pressures," they said. Singapore"s benchmark index gave up gains made in the previous session and slid 0.7%. HIGHLIGHTS: ** Indonesian 10-year benchmark yields are up 1.7 basis points at 6.435%. ** Top losers on the Singapore STI include Yangzijiang Shipbuilding Holdings down 2.1%, Singapore Airlines down 2%, and Sembcorp Industries down 1.8%. ** Indonesia raised 10 trillion rupiah ($701.3 million) from an Islamic bond auction on Tuesday. Asia stock indexes and currencies at 0708 GMT COUNTRY FX RIC FX DAILY % FX YTD % INDEX STOCKS DAILY % STOCKS YTD % Japan +0.08 -6.13 -0.51 6.73 China +0.11 +2.00 -1.06 1.32 India -0.05 -0.39 -0.48 12.95 Indonesia -0.18 -1.44 0.00 1.84 Malaysia +0.00 -2.31 0.05 -2.77 Philippines -0.06 -0.17 -0.05 -2.33 S.Korea -0.02 -2.77 0.62 14.10 Singapore +0.03 -0.42 -0.67 10.89 Taiwan -0.08 +2.93 -0.37 17.48 Thailand -0.10 -3.85 0.49 12.48 ($1 = 14,260.0000 rupiah) (Reporting by Shashwat Awasthi in Bengaluru; Editing by Sujata Rao and Rashmi Aich) Our Standards: The Thomson Reuters Trust Principles.