U.S. Markets closed

EM ASIA FX-Rupiah, won lead Asia FX lower despite easing Syria tension

* Rupiah near 4-1/2-yr low on corp dollar demand

* Won slides on intervention caution, importers

* Philippine peso turns lower on corp dlr bids

(Adds text, updates prices)

By Jongwoo Cheon

Sept 11 (Reuters) - The Indonesian rupiah and the South

Korean won led slides among emerging Asian currencies on

Wednesday as investors booked profits from gains in regional

units and stock markets earlier in the week.

The rupiah hovered near its weakest in 4-1/2 years on

sustained dollar demand from local companies.

The won fell on increasing caution over possible

intervention by the foreign exchange authorities.

The Philippine peso and the Malaysian ringgit

, which started the day firmer, also turned weaker.

Earlier, most emerging Asian currencies advanced on signs

that the United States is moving away from taking military

action against Syria after a diplomatic initiative from Russia.

But regional units came under pressure as 10-year U.S.

Treasury note yield rose to 2.9718 in Asian trading.

MSCI's broadest stock index of Asia-Pacific shares outside Japan

also turned lower.

"Higher U.S. yields are not helping Asian currencies and we

have negative equity market sentiment throughout the region,"

said Jonathan Cavenagh, a senior FX strategist at Westpac in


"We could see more profit-taking but we need to see a

catalyst for dollar/Asia to significantly move higher," Cavenagh


Emerging Asian currencies could weaken much further if the

10-year U.S. note yield rises above 3.00 percent, he added.

Most regional units rose earlier this week as investors

covered short positions after weaker-than-expected U.S. jobs

data and solid Chinese economic indicators.


Spot rupiah indicative prices lost as much as 2.3 percent to

11,475 per dollar on corporate demand for the greenback. That

compared with 11,500, its weakest since April 2009, hit on


Forwards market pointed to more weakness with one-month

deliverable forwards weakening to 11,560.

Still, the Indonesian currency cut some of initial losses on

equity-linked inflows and as 5- and 10-year bond yields



The won slid as offshore funds and local importers bought

dollars after South Korea's foreign exchange authorities were

spotted intervening on Tuesday to stem its upside.

Foreign investors continued to buy Seoul stocks, but

a lack of exporters' demand put pressure on the won, traders


"The 1,080 resistance is seen getting stronger and that

caused more people to add dollar long positions, although it

would be a key if we see more stock inflows," said a foreign

bank trader in Seoul, referring to the won's value against the



The ringgit initially rose as investors continued to cover

short positions.

But it turned weaker on dollar demand from custodian banks

and as it faces a chart resistance area around 3.2600 per

dollar, traders said.

Local importers also purchased the greenback for settlements

around that level, according to traders.

"The resistance at 3.26 is pretty clear," said a senior

Malaysian bank trader in Kuala Lumpur, adding he would buy the

ringgit only when it strengthens past the line for a target of


"I want to be long dollar going into FOMC next week," he

said, referring to the Federal Open Market Committee meeting on

Sept. 17-18.

Meanwhile, the ringgit found some relief from data showing

the country's industrial output in July grew at its fastest pace

since May 2012.


The peso started the local trade at a session high of 43.65

per dollar, its strongest since Aug. 16.

Investors covered short positions which they had built up on

expectations that the Philippine currency may have not

strengthen past 43.80, traders said.

But the peso failed to stay on the black on dollar demand

from local companies and as traders covered short positions in

the greenback.

"The peso might see some resistance at 43.60," said a

foreign bank trader in Manila.

"With the FOMC next week, I don't think people would hold on

to big dollar short positions."


Change on the day at 0450 GMT

Currency Latest bid Previous day Pct Move

Japan yen 100.48 100.38 -0.10

Sing dlr 1.2700 1.2685 -0.12

Taiwan dlr 29.769 29.760 -0.03

Korean won 1087.90 1084.10 -0.35

Baht 32.15 32.15 +0.00

Peso 43.86 43.83 -0.07

Rupiah 11475.00 11210.00 -2.31

Rupee 64.10 63.84 -0.40

Ringgit 3.2780 3.2770 -0.03

Yuan 6.1199 6.1200 +0.00

Change so far in 2013

Currency Latest bid End prev year Pct Move

Japan yen 100.48 86.79 -13.62

Sing dlr 1.2700 1.2219 -3.79

Taiwan dlr 29.769 29.136 -2.13

Korean won 1087.90 1070.60 -1.59

Baht 32.15 30.61 -4.79

Peso 43.86 41.05 -6.41

Rupiah 11475.00 9630.00 -16.08

Rupee 64.10 54.99 -14.21

Ringgit 3.2780 3.0580 -6.71

Yuan 6.1199 6.2303 +1.80

(Additional reporting by KyoungHo Lee in SEOUL and IFR Markets'

Catherine Tan; Editing by Kim Coghill)