countrywomen leapfrogging: EM ASIA FX-Peso rises on S&P upgrade, Asia FX mixed before ECB

* Philippine c.bank intervention caution caps peso's gains

* Ringgit dips on dlr short-covering; 3.1700/dlr seen

supported

* Won edges up on model funds, exporters; importers limit

(Adds details, updates prices)

By Jongwoo Cheon

SINGAPORE, July 5 (Reuters) - The Philippine peso rose on

Thursday after Standard & Poor's raised its credit rating on

the country to one notch below investment grade, but other

emerging Asian currencies were mixed as investors awaited a rate

decision by the European Central Bank.

The Indian rupee fell on weak investor response at

an auction for debt limits for foreign institutional investors

on Wednesday, while the South Korean won edged up on demand from

offshore funds.

A Reuters poll of economists showed a majority expect the

ECB to cut its main interest rate by 25 basis points to 0.75

percent on Thursday, while money market traders are evenly split

on whether the central bank will cut the deposit rate, a

separate survey showed.

Late on Wednesday, S&P upgraded the long-term sovereign

credit rating of the Philippines to BB plus from BB with a

stable outlook late, a move likely to boost bonds and currency

trades and further lift an equity market that has hit new record

highs this week.

The move helped push the peso up as much as 0.6 percent to

41.600 to the dollar on Thursday, though it later pared gains

on caution over possible dollar-buying intervention by the

central bank.

"The market is being cautious right now as they suspect

agent banks (of the central bank) of supporting the dollar and

after a dollar-short squeeze yesterday. Traders are just sitting

on offers but not trying to push dollar/peso lower," said a

European bank dealer in Manila.

"But I would assume that there will be fresh inflows,

especially in the fixed income market. The equity market would

also rally with the upgrade," the dealer said, adding he was

looking to buy the peso on dips.

Manila stocks rose 0.2 percent, outperforming

Asia-Pacific shares outside Japan which dipped

0.1 percent.

Many traders and analysts said the upgrade had already been

factored into current peso levels to some degree.

"The upgrade was not a surprise. I am not sure if this

lagged S&P move is going to prompt funds that have not invested

in Philippine to suddenly jump on board," said a senior European

bank dealer in Singapore.

The dealer said he has not heard of much demand for the

country's assets from offshore funds yet.

Still, dealers and analysts expect the upgrade to be another

boost for the domestic currency.

"It is sort of priced in as Fitch has them at BB plus," said

BNP Paribas currency strategist Thio Chin Loo in Singapore,

adding that the peso was expected to stay firm with a target of

40.00 by end of this year.

The peso is the best performing emerging Asian currency so

far this year with a 5.2 percent gain against the dollar, thanks

to inflows.

RINGGIT

Dollar/ringgit rose as interbank players covered

short positions before the ECB's rate decision.

Its rise came as Asian shares and the euro slid.

Dollar/ringgit is seen facing a technical resistance at

3.1700, where the daily Icimoku kijun line and tenkan line sit,

dealers said.

A Malaysian bank dealer said market players will sell the

pair again when it approaches the level.

WON

Dollar/won started the local trade higher, but it

turned lower as offshore model funds sold the pair in tepid

trading, dealers said.

Exporters also joined the offers and some interbank players

cut long positions.

But South Korean importers also bought it for payments on

dips.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0645 GMT

Japan yen 79.64 79.87 +0.29

Sing dlr 1.2660 1.2664 +0.03

Taiwan dlr 29.860 29.866 +0.02

Korean won 1134.79 1135.80 +0.09

Baht 31.55 31.48 -0.22

Peso 41.68 41.83 +0.36

Rupiah 9370.00 9370.00 +0.00

Rupee 55.01 54.48 -0.96

Ringgit 3.1610 3.1525 -0.27

Yuan 6.3523 6.3477 -0.07

Change so far in 2012

Currency Latest bid End prev year Pct Move

Japan yen 79.64 76.92 -3.42

Sing dlr 1.2660 1.2969 +2.44

Taiwan dlr 29.860 30.290 +1.44

Korean won 1134.79 1151.80 +1.50

Baht 31.55 31.55 +0.00

Peso 41.68 43.84 +5.18

Rupiah 9370.00 9060.00 -3.31

Rupee 55.01 53.08 -3.51

Ringgit 3.1610 3.1685 +0.24

Yuan 6.3523 6.2940 -0.92

(Additional reporting by Saikat Chatterjee in HONG KONG and

Swati Bhat in MUMBAI; Editing by Kim Coghill )

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Asian currencies Asian currencies in Asia

Malaysian ringgit Indonesian rupiah

Singapore dollar Thai baht

Taiwan dollar Hong Kong dollar

Philippine peso Korean won

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countrywomen leapfrogging

Friday, July 6, 2012

EM ASIA FX-Peso rises on S&P upgrade, Asia FX mixed before ECB

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