Emerging FX-C.bank supports weaker peso; won vols creep up

* Renewed financial-sector concerns fuel risk aversion

* Central bank intervention seen as peso hits 3-week low

* Won volatilities creep up as the spot dips on weaker stocks

SINGAPORE, April 21 - The South Korean won led a broad decline in Asian currencies on Tuesday as renewed concerns about the U.S. financial sector prompted investors to dump regional stocks.

U.S. stocks slid on Monday after Bank of America, the largest U.S. bank, reported a jump in non-performing assets, underscoring the banking sector's troubles.

PESO

The Philippine peso went down at the opening and hit a 3-week low at 48.42 to the dollar as investors sold local stocks, but the currency fall was contained by likely central bank intervention.

"The BSP (the central bank) minimised the gap by selling (dollars) at 48.20 versus the previous close at 48.09," said a dealer in Manila.

"The market bid on the overall strong dollar and also short covering on break of 48.30 resistance," added the trader.

One-year offshore dollar/peso non-deliverable forwards jumped to 50, implying a 3.2 percent depreciation. Still, the spread between NDFs and spot was tighter than on Monday when one-year NDFs implied a 3.6 percent depreciation in peso.

WON

The South Korean won fell as much as 2 percent to 1,364.9 per dollar, its lowest since April 2, as part of an Asia-wide currency decline in tandem with weaker stocks.

"Dollar/won moves higher as equities head lower," said a Singapore-based trader.

The won later recovered slightly to 1,350 as Korean shares pared losses.

Some analysts expected the won to retreat further following its sharp rally since early March.

"Should a rebound in global risk aversion combine with weaker than expected Korean economic numbers, we believe that the dollar/won could jump back quickly to above 1,400," analysts at Calyon said in a note.

But six-month dollar/won NDFs now implied a 0.7 percent won appreciation from the spot.

Meanwhile, one-month implied volatilities in the won edged up to 28 percent from 27 percent on Monday, but were still off the 34 percent level hit earlier this month.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0508 GMT Currency Latest bid Previous day Pct Move Japan yen 98.33 97.95 -0.39 Sing dlr 1.5077 1.5105 +0.19 Taiwan dlr 33.886 33.830 -0.17 Korean won 1348.80 1335.00 -1.02 Baht 35.55 35.55 +0.00 Peso 48.37 48.09 -0.58 Rupiah 10840.00 10750.00 -0.83 Rupee 50.43 50.31 -0.25 Ringgit 3.6450 3.6300 -0.41 Yuan 6.8335 6.8336 +0.00 Change so far in 2009 Currency Latest bid End prev year Pct Move Japan yen 98.33 90.60 -7.86 Sing dlr 1.5077 1.4340 -4.89 Taiwan dlr 33.886 32.860 -3.03 Korean won 1348.80 1259.50 -6.62 Baht 35.55 34.80 -2.11 Peso 48.37 47.52 -1.76 Rupiah 10840.00 11000.00 +1.48 Rupee 50.43 48.71 -3.41 Ringgit 3.6450 3.4500 -5.35 Yuan 6.8335 6.8230 -0.15