Emerging FX-Asia awaits policy signal, Thai c.bank sells dlrs

By Kevin Yao

SINGAPORE, July 7 (Reuters) - Most Asian currencies moved
in narrow ranges on Monday as investors waited for policy
signals from U.S. Federal Reserve chief Ben Bernanke and Group
of Eight leaders, while the Bank of Thailand tried to prop up
the baht.

The South Korean won managed decent gains versus the
dollar, buoyed by the authorities' warning that stronger
dollar-selling intervention was possible to boost the local
unit.

The Malaysian ringgit MYR= moved between 3.2630 and
3.2680 per dollar, while the Singapore dollar SGD= steadied
near 1.3650 per dollar after hitting an intraday low at 1.3660.

One trader said some investors moved to cover short
positions on the U.S. dollar versus the Singapore dollar,
taking the view that it would gain against most Asian
currencies in the near term.

"Probably a majority see higher dollar/Asians, so they'd
rather square their short positions ahead of Bernanke," the
trader said.

As G8 leaders gathered in Japan to discuss climate change,
along with soaring food and oil prices, investors wanted to see
whether the policy makers from the rich countries would send
any strong message on the dollar's slide. [G7/G8]

Several Federal Reserve officials are slated to speak this
week, with Bernanke addressing a Federal Deposit Insurance Corp
forum on Tuesday and appearing before the House Financial
Services committee on Thursday.

The Philippine peso fell as far 45.72 per dollar, down
almost 0.6 percent from Friday's close.

"The general view is still for a stronger dollar versus the
peso. Probably the market is looking for good levels to buy
(the dollar)," said a Manila-based trader.

The peso was quoted at 47.77 per dollar in six-month
offshore non-deliverable forwards PHP6MNDFOR=, implying a
fall of almost 5 percent from the current level.

The won KRW= rose as far as 1,036.2 per dollar, up almost
1.4 percent from Friday's domestic close of 1,050.4 as the
authorities warned there could be some aggressive
dollar-selling intervention to prop up the won and fight
inflation.

THAI INTERVENTION

The Bank of Thailand intervened in the market again,
selling dollars to support the baht near the pyschologically
important 33.60-per-dollar level.

The Thai baht <THB=TH=> still slipped as low as 33.68, its
weakest level since December 2007, as investors dumped local
stocks amid concern about political uncertainty. The stock
market .SETI shed 1.2 percent.

A Thai court is due to rule on Tuesday in a case involving
People Power Party deputy leader Yongyut Tiyapairat. If he is
found guilty of vote buying in the 2007 election, it could
eventually lead to the dissolution of the main party in the
ruling coalition.

In recent weeks, the authorities in South Korea, India,
Thailand and the Philippines have propped up their currencies
by selling dollars, but analysts are sceptical of the
effectiveness of such intervention.

"For sure, we believe that their intervention may be
partially successful in holding the currencies in the near
term," Stewart Newnham, a currency strategist at Morgan
Stanley, said in a note.

"But looking further out, we believe that the central banks
cannot indefinitely hold back the fundamental forces that they
are up against, as they are too powerful, in our view," he
said.

The won, the Indian rupee INR=IN, the Philippine peso
PHP= and Vietnam's dong VND= are particularly vulnerable to
high oil prices, which worsen the countries' trade deficits,
analysts say.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0812 GMT
Currency Latest bid Previous day Pct Move
Japan yen 107.65 106.81 -0.78
Sing dlr 1.3643 1.3607 -0.26
Taiwan dlr 30.396 30.401 +0.02
Korean won 1039.00 1050.20 +1.08
Baht 33.66 33.42 -0.71
Peso 45.72 45.45 -0.59
Rupiah 9202.00 9215.00 +0.14
Rupee 43.17 43.15 -0.05
Ringgit 3.2645 3.2650 +0.02
Yuan 6.8592 6.8589 -0.00
Change so far in 2008
Currency Latest bid End prev year Pct Move
Japan yen 107.65 111.33 +3.42
Sing dlr 1.3643 1.4382 +5.42
Taiwan dlr 30.396 32.443 +6.73
Korean won 1039.00 935.70 -9.94
Baht 33.66 33.68 +0.06
Peso 45.72 41.28 -9.71
Rupiah 9202.00 9390.00 +2.04
Rupee 43.17 39.41 -8.71
Ringgit 3.2645 3.3050 +1.24
Yuan 6.8592 7.3041 +6.49
(Editing by Alan Raybould)