* Investors cut long ringgit positions before May 5 election
* Philippine peso, won turn down with intervention suspected
* Baht down as Thai consumer confidence slides
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, May 2 (Reuters) - The Malaysian ringgit fell on
Thursday as investors cut bullish positions ahead of the weekend
general election while most emerging Asian currencies edged down
on worries about a global economic slowdown.
The Philippine peso and the South Korean won
turned lower as foreign exchange authorities in the two
countries were suspected of intervening to stem the appreciation
of their currencies, traders said.
The ringgit slid as much as 0.5 percent to 3.0570
per dollar, its weakest since April 24.
The Malaysian currency had appreciated around 2.0 percent
last month since April 3 when Prime Minister Najib Razak
announced a general election.
Investors have been betting that the ruling Barisan Nasional
coalition would win with a reduced parliamentary majority in the
Sunday vote, and expect a new government would not make any
major policy changes.
The ringgit may see a relief rally, probably to 3.0000, if
the ruling coalition wins the election, analysts said.
However, investors booked profits as the election campaign
intensifies.
"The ringgit could probably weaken to 3.10 first on
uncertainty, especially if stocks sell off," said BNP Paribas
currency strategist Thio Chin Loo in Singapore, when asked if
the ringgit will slide further in case of a victory for the
opposition Pakatan Rakyat, an alliance led by former Deputy
Prime Minister Anwar Ibrahim.
An opposition victory would create unprecedented uncertainty
in the political landscape in Malaysia, and herald a major
shake-up in five decades of cosy relations between government
and business.
Malaysia's financial markets were caught napping in 2008
when shock electoral gains by the opposition redrew the
country's political map and sparked a 10 percent one-day plunge
in the main stock index.
Still, the ringgit's potential fall after the election may
not last long barring the vote resulting in a hung parliament,
said Saktiandi Supaat, head of FX research for Maybank in
Singapore.
"If the election runs smoothly, a smooth transition is made
and policy proceeds, the ringgit will stabilise," said Supaat,
adding his year-end target for the ringgit is at 2.9800 per
dollar with continuous inflows.
"BNM will not tolerate too rapid moves either way," he
added, referring to the central bank, Bank Negara Malaysia.
PHILIPPINE PESO
The peso started the local session slightly firmer but it
turned weaker as the central bank was suspected of preventing it
from strengthening past 41.150 per dollar, traders said.
"The central bank is trying to realign the peso to the
overall weakness of regional currencies," said a senior
Philippine bank trader in Manila.
The peso is seen trading between 41.10 and 41.50 with a
softer bias as some offshore funds appeared to still hold long
positions and given the central bank's stance, the trader added.
The country had a budget deficit of 35.2 billion Philippine
pesos ($855.2 million) in March, wider than the previous year's
28.6 billion pesos, as government spending rose from a year ago.
WON
The won gained as much as 0.3 percent to 1,098.0 per dollar,
its strongest since March 13 on sustained demand from local
exporters.
But the South Korean currency ended local trade slightly
weaker as foreign exchange authorities were suspected of
intervening to curb its gains, traders said.
"Given the authorities' determination, there is no reason to
chase the won when it is stronger than 1,100," said a senior
foreign bank trader in Seoul.
BAHT
The Thai baht slid as much as 0.4 percent to 29.45
per dollar, its weakest since April 3.
The country's consumer confidence in April slid, date showed
earlier, as a strong baht has alarmed exporters and prompted the
government to call for an interest rate cut to stem capital
inflows.
Thai bond prices rose with the five-year government bond
yield down to 2.94 percent and the 10-year yield
falling to 3.37 percent.
TAIWAN DOLLAR
The Taiwan dollar gained as local stocks
hit a 14-month high and on inflows from foreign financial
institutions.
But its upside was limited on caution over intervention by
the central bank, especially as it was spotted buying U.S.
dollar on Tuesday afternoon after disappointing first quarter
growth.
Foreign inflows were not that large, either, currency
traders said.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0645 GMT
Currency Latest bid Previous day Pct Move
Japan yen 97.27 97.41 +0.14
Sing dlr 1.2339 1.2331 -0.06
Taiwan dlr 29.556 29.616 +0.20
Korean won 1101.52 1101.20 -0.03
Baht 29.38 29.35 -0.12
Peso 41.23 41.16 -0.18
Rupiah 9726.00 9720.00 -0.06
Rupee 53.74 53.80 +0.11
Ringgit 3.0560 3.0425 -0.44
Yuan 6.1551 6.1650 +0.16
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 97.27 86.79 -10.77
Sing dlr 1.2339 1.2219 -0.97
Taiwan dlr 29.556 29.136 -1.42
Korean won 1101.52 1070.60 -2.81
Baht 29.38 30.61 +4.19
Peso 41.23 41.05 -0.44
Rupiah 9726.00 9630.00 -0.99
Rupee 53.74 54.99 +2.33
Ringgit 3.0560 3.0580 +0.07
Yuan 6.1551 6.2303 +1.22
($1 = 41.1600 Philippine pesos)
(Additional reporting by Roger Tung in TAIPEI; Editing by Shri
Navaratnam)
