* Asia FX up on worries of protracted U.S. govt shutdown
* Ringgit leads gains; dollar falls broadly
* Peso extends gains after Moody's upgrades Philippines
By Masayuki Kitano
SINGAPORE, Oct 3 (Reuters) - Asian currencies rose on
Thursday as the dollar retreated due to worries that the U.S.
government's partial shutdown could drag on, with the peso
getting an added lift after Moody's upgraded the Philippines.
The peso extended its gains versus the dollar after Moody's
Investors Service upgraded the Philippines to an
investment-grade Baa3 from Ba1 and assigned a positive outlook.
The Philippines had already won investment-grade ratings
from two other leading agencies this year. Fitch Ratings
delivered the first, in March, with Standard & Poor's following
after five weeks.
"It pushed the dollar/peso to break below the 43.20-25
support level, which was previously a very strong (dollar)
support," said a trader for a bank in the Philippines.
The peso last stood at 43.13 to the dollar, up
about 0.6 percent on the day.
"I think the move lower in the dollar against the peso will
be limited," said Sean Yokota, head of Asia strategy for
Scandinavian bank SEB in Singapore. Yokota added that this being
the third rating agency to upgrade Philippines to investment
grade it should be priced in.
Emerging Asian currencies rallied broadly, led by gains in
the Malaysian ringgit. The Singapore dollar
underperformed its peers and was flat on the day.
"U.S. dollar selling across the board. Everybody is
selling...or rather nobody wants to be long," said a trader for
a Malaysian bank in Kuala Lumpur.
Speculation that the U.S. government shutdown could prolong
and lessen the chances of the Federal Reserve tapering its
monetary stimulus in the near term has helped support Asian
currencies against the dollar in the past few days.
"If the shutdown stretches into weeks, there will be a drag
on growth," said Andy Ji, Asian currency strategist for
Commonwealth Bank of Australia in Singapore.
"With the dollar index trading close to its levels at
end-2012, it appears the market is pricing in even a slight
chance of no-tapering this year, which is probably too dovish,
The Taiwan dollar touched a near five-month high of
29.403 versus the U.S. dollar.
Traders said inflows from overseas investors helped lift the
Taiwan dollar, while flows from local exporters were relatively
The following table shows the position of Asian currencies
against the dollar at 0455 GMT.
CURRENCIES VS U.S. DOLLAR
*South Korean markets are closed for a holiday.
*Chinese markets are closed from Oct. 1 through Oct. 7 for
the National Day holiday.
Change on the day at 0455 GMT
Currency Latest bid Previous day Pct Move
Japan yen 97.68 97.36 -0.33
Sing dlr 1.2486 1.2484 -0.02
Taiwan dlr 29.407 29.610 +0.69
Korean won 1074.02 1074.00 -0.00
Baht 31.17 31.32 +0.48
Peso 43.13 43.40 +0.63
Rupiah 11525.00 11555.00 +0.26
Rupee 61.90 62.46 +0.91
Ringgit 3.1920 3.2270 +1.10
Yuan 6.1220 6.1220 +0.00
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 97.68 86.79 -11.15
Sing dlr 1.2486 1.2219 -2.14
Taiwan dlr 29.407 29.136 -0.92
Korean won 1074.02 1070.60 -0.32
Baht 31.17 30.61 -1.80
Peso 43.13 41.05 -4.82
Rupiah 11525.00 9630.00 -16.44
Rupee 61.90 54.99 -11.16
Ringgit 3.1920 3.0580 -4.20
Yuan 6.1220 6.2303 +1.77
(Additional reporting by Jeanny Kao in TAIPEI; Editing by