EM ASIA FX-Rupiah, peso at multi-week lows on profit-taking

* Rupiah falls 1 pct as dollar rebound sparks profit-taking

* Peso hits lowest this month as investors buy back dollars

* Asia FX may correct lower but longer-term strength intact

By Kevin Yao

SINGAPORE, Oct 27 (Reuters) - A rebound in the U.S. dollar
touched off a wave of profit-taking in Asian currencies on
Tuesday, with the high-yielding Indonesian rupiah falling as
much as 1 percent.

Analysts said that while Asian currencies may give up some
of the sharp gains they have made since March, long-term
appreciation remains intact as the region leads the global
economic recovery.

"We expect dollar/Asians to stay bid as stocks correct and
on position adjustment with market plays long Asians," said
Thio Chin Loo, currency strategist at BNP Paribas.

Emmanuel Ng, strategist at OCBC Bank, said Asian units,
while consolidating, may be waiting for cues from major
currencies.

The Indian rupee was among the day's heavy losers as
central bank began withdrawing some liquidity support measures
taken when the global crisis hit the economy. It left key
policy rates unchanged. [ID:nBAY002155]

The Chinese yuan eased a tad against the dollar in line
with other Asian currencies, as the United States said it
sought more progress on appreciation in the yuan, which has
been virtually pegged to the dollar since mid-2008.
[ID:nPEK314919]

China is expected to let the yuan resume its steady
appreciation against the dollar early next year when its
exports are likely to be rising again.

RUPIAH

The high-yielding rupiah IDR= fell as much as 1 percent
to 9,570 per dollar, its lowest in three weeks.

Still, the rupiah is up almost 26 percent from March,
underpinned by foreign investment in the country's stocks and
bonds.

Three-month dollar/rupiah NDFs IDR3MNDFOR= jumped to
9,675 from Monday's close at 9,562.

CIMB strategist Suresh Ramanathan suspected offshore names
were hedging their long onshore rupiah positions by buying
dollar/rupiah via NDFs.

"We have seen a big move in spot and probably could see
further losses in rupiah spot onshore. If this happens, it's a
cost for holding rupiah bonds and equities, so they need to
hedge to keep the carry rather positive," he said.

PESO

The peso PHP= lost 0.6 percent to 47.30 per dollar, its
lowest this month, as the dollar's broad rally prompts
investors to cover short dollar/peso positions.

"Overnight risk aversion is pulling dollar/peso higher. The
pair has breached 47.25 resistance and is poised to head higher
if risk aversion gathers further momentum," said a Manila-based
dealer.

In the offshore market, three-month dollar/peso NDFs
PHP3MNDFOR= rose to 47.48, implying a 0.5 percent peso fall
from the spot compared to 0.6 percent on Monday.

"Short covering across the board on Asians and peso follows
suit," said a Singapore-based NDF trader.

RINGGIT

The ringgit MYR= shed as much as 0.8 percent to 3.405 per
dollar, tracking the broad weakness in Asia.

"Apart from a dollar rebound, there was some dollar
short-covering. Some local dollar offers were made by exporters
above 3.4020 which probably came from Petronas," said a dealer
at a bank in Kuala Lumpur.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0634 GMT
Currency Latest bid Previous day Pct Move
Japan yen 92.03 92.20 +0.18
Sing dlr 1.3963 1.3980 +0.12
Taiwan dlr 32.403 32.394 -0.03
Korean won 1183.20 1177.60 -0.47
Baht 33.43 33.37 -0.18
Peso 47.08 47.00 -0.18
Rupiah 9540.00 9475.00 -0.68
Rupee 46.84 46.65 -0.41
Ringgit 3.3960 3.3780 -0.53
Yuan 6.8292 6.8278 -0.02
Change so far in 2009
Currency Latest bid End prev year Pct Move
Japan yen 92.03 90.60 -1.55
Sing dlr 1.3963 1.4340 +2.70
Taiwan dlr 32.403 32.860 +1.41
Korean won 1183.20 1259.50 +6.45
Baht 33.43 34.80 +4.10
Peso 47.08 47.52 +0.93
Rupiah 9540.00 11000.00 +15.30
Rupee 46.84 48.71 +4.00
Ringgit 3.3960 3.4500 +1.59
Yuan 6.8292 6.8230 -0.09
(Additional reporting by Vithoon Amorn in Bangkok; Editing by
Neil Fullick)