EM ASIA FX-Singapore dollar, baht track firmer euro

* S$, baht take euro's cue on report of China reserve shift

* Emerging Asian currencies consolidate after sharp rallies

By Kevin Yao

SINGAPORE, Oct 26 (Reuters) - The Singapore dollar and Thai
baht tracked a firmer euro on Monday after a report fanned
speculation that China may diversify its foreign exchange
reserves away from the U.S. dollar.

The dollar fell to a 14-month low against the euro after a
Chinese central bank researcher wrote in an opinion piece that
Beijing should increase euro and yen in its foreign reserves.
[ID:nT261446]

But analysts expect most Asian currencies to consolidate in
the coming days after rising sharply since the start of
September on the back of the dollar's plunge.

Asian central banks have intervened in recent weeks by
buying dollars to slow the rise in their currencies and help
exporters.

"We are in the correction phase right now," said Magnus
Prim, chief Asia currency strategist at SEB in Singapore.

"I would expect the intervention to continue , but it won't
stop the appreciation trend from resuming again."

SINGAPORE DOLLAR

The Singapore dollar SGD= gained 0.3 percent to 1.3915
per U.S. dollar, taking its cue from euro.

"It's euro driven as usual, but USD's downside is limited
by worries about the authority's presence," said a trader,
referring to market intervention by the Monetary Authority of
Singapore.

The Singapore dollar has gained almost 4 percent since
early September, fanning market jitters of possible official
intervention to temper its strength.

Many traders believe the central bank will not buy U.S.
dollars unless the Singapore dollar re-test a 14-month high hit
earlier this month.

"Maybe you will see them at 1.3880s. I don't think U.S.
dollar/Singapore dollar will test new lows within 2-3 days,"
said another trader.

The currency shrugged off data that showed factor output
fell 9.1 percent in September from the previous month on a
seasonally adjusted basis, as a recent boom in the biomedical
industry faded. [ID:nSP272209]

BAHT

The baht THB= rose 0.4 percent to 33.32 per dollar in
line with euro.

"The baht returns to its general upbeat tone after two
weeks of volatility fuelled by rumours on the king's health.
The absence of further rumours this week could induce more
capital inflows and help Thai stocks and baht," said a dealer.

Investor concern about the 81-year-old Thai king's health
have eased with his first public appearance on Friday after
more than a month in hospital.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0651 GMT
Currency Latest bid Previous day Pct Move
Japan yen 91.82 92.04 +0.24
Sing dlr 1.3931 1.3950 +0.14
Taiwan dlr 32.388 32.398 +0.03
Korean won 1176.90 1181.50 +0.39
Baht 33.37 33.46 +0.27
Peso 46.99 46.98 -0.02
Rupiah 9445.00 9420.00 -0.26
Rupee 46.56 46.50 -0.12
Ringgit 3.3800 3.3800 +0.00
Yuan 6.8277 6.8285 +0.01
Change so far in 2009
Currency Latest bid End prev year Pct Move
Japan yen 91.82 90.60 -1.33
Sing dlr 1.3931 1.4340 +2.94
Taiwan dlr 32.388 32.860 +1.46
Korean won 1176.90 1259.50 +7.02
Baht 33.37 34.80 +4.29
Peso 46.99 47.52 +1.13
Rupiah 9445.00 11000.00 +16.46
Rupee 46.56 48.71 +4.63
Ringgit 3.3800 3.4500 +2.07
Yuan 6.8277 6.8230 -0.07
(Editing by Jan Dahinten)