EM ASIA FX-Rupiah falls but later rebounds on c.bank comment

* Rupiah rebounds after c.bank soothes tightening jitters

* Most Asian currencies edge up vs dollar on stock gains

* Dollar steadies below 1-month highs vs major currencies

By Kevin Yao

SINGAPORE, Nov 4 (Reuters) - The Indonesian rupiah
initially fell on Wednesday on concerns tighter monetary policy
could prompt more government bond selling, but it rebounded
after the central bank kept rates on hold and sounded dovish on
inflation.

Most Asian currencies inched up in tandem with regional
stocks.

The dollar steadied below a one-month high against major
currencies as investors awaited news on the outcome of a
two-day Federal Reserve meeting later in the day, while the
Australian dollar eased after data dimmed the prospects for a
December rate increase. [ID:nT173780]

The Fed is widely expected to leave rates unchanged so the
market's main focus is what it will say in its statement, due
around 2115 GMT, with speculation it might drop or alter its
pledge to keep rates low for an "extended period". [nFEDAHEAD]

RUPIAH

The rupiah IDR= fell to 9,610 briefly as traders spotted
dollar-selling intervention by the central bank to defend the
9,600 level.

The unit rebounded to 9,550 after the central bank kept
interest rates on hold and flagged downward inflation pressure
in the medium-term, providing a relief for investors who had
anticipated tightening signals. [ID:nJAK48905]

That left it slightly stronger than 9,570 late on Tuesday.

The rupiah was initially sold off in anticipation that
foreign investors would sell off bonds on signs of more hawkish
leanings from the central bank.

Foreign investors are already starting to take some profits
on the strong rally this year in Indonesian bonds. They sold a
net 330 billion rupiah ($35 million) in bonds last week but
their net purchases in October were well over 8 trillion
rupiah.

"Investors sold bonds earlier to take profits, but BI kept
rates on hold and indicated no rate hike this year," said a
trader.

RINGGIT

The Malaysian ringgit rose a third of a percent to 3.4180
per dollar as investors moved to cover short ringgit positions
after the unit's recent fall.

The ringgit has lost nearly 2 percent since mid-October.

"The market was caught long dollars and may be unwinding
some of these dollar longs, but other than these factors, the
flows have been rather thin today," said CIMB strategist Suresh
Ramanathan.

PESO

The peso PHP= fell slightly to 47.80 per dollar, partly
on dollar buying momentum.

"Reports on UK bank bailouts [ID:nL3572653] and weaker than
expected Aussie retail sales data boosted risk aversion a bit
more, but the peso's slide should find good resistance at
47.80," a Manila-based bank dealer said.

Dealers said the peso's recent fall could be largely
attributed to rising risk aversion hitting emerging market
assets.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0652 GMT
Currency Latest bid Previous day Pct Move
Japan yen 90.42 90.33 -0.10
Sing dlr 1.3971 1.3995 +0.17
Taiwan dlr 32.554 32.575 +0.06
Korean won 1179.40 1182.00 +0.22
Baht 33.43 33.48 +0.15
Peso 47.71 47.73 +0.04
Rupiah 9539.00 9570.00 +0.32
Rupee 47.10 47.40 +0.64
Ringgit 3.4160 3.4290 +0.38
Yuan 6.8277 6.8280 +0.00
Change so far in 2009
Currency Latest bid End prev year Pct Move
Japan yen 90.42 90.60 +0.20
Sing dlr 1.3971 1.4340 +2.64
Taiwan dlr 32.554 32.860 +0.94
Korean won 1179.40 1259.50 +6.79
Baht 33.43 34.80 +4.10
Peso 47.71 47.52 -0.40
Rupiah 9539.00 11000.00 +15.32
Rupee 47.10 48.71 +3.42
Ringgit 3.4160 3.4500 +1.00
Yuan 6.8277 6.8230 -0.07
(Additional reporting by Vithoon Amorn in BANGKOK; Editing by
Neil Fullick)