EM ASIA FX-Sing dollar at 1-yr high, Peso firms on weka US dlr

SINGAPORE, Sept 23 - The Singapore dollar hit a one-year peak while the Philippine peso rose to its highest in nearly four months on Wednesday as the U.S. dollar faltered globally and a rally in regional stocks lifted sentiment.

The dollar hit a one-year low against a basket of currencies <.DXY> as market players dumped the low-yielding currency on ahead of a Federal Reserve policy decision later in the day which is expected to keep rates at record lows. [ID:nSP518692]

SINGAPORE DOLLAR

The Singapore dollar <SGD=> gained 0.3 percent to 1.4086 per U.S. dollar, lifting fears of possible official intervention to curb its strength.

It has gained 10 percent since early March.

The Monetary Authority of Singapore (MAS), which keeps the currency's nominal effective exchange rate (NEER) with a secret band, eased policy in April by lowering the band's mid-point.

Analysts generally expect the central bank to keep its zero appreciation stance in October, even as the economy is steadily recovering its worst ever recession.

Data issued on Wednesday showed Singapore's August consumer price index shed 0.3 percent from a year earlier but still edged up 0.4 percent from the previous month. [ID:nSGC003301]

Analysts at ING expected prices to start rising in the fourth quarter of 2009, raising the chance of a policy tightening early next year.

"The soonest we think a return to a NEER appreciation policy is possible is in April 2010. For now, MAS policy and the weak-U.S. currency make selling U.S. dollar/Singapore dollar among our top FX picks," they said in a note.

PESO

The peso <PHP=> gained half of a percent to 47.32 per dollar, highest since June 6, riding on the dollar's broad weakness.

"Peso is very strong at the moment and is still tracking the euro," said a Manila-based trader, adding that rising local stocks also buoy sentiment.

But the peso remains a laggard in Asia, trailing behind the likes of Indonesian rupiah <IDR=> and South Korean won <KRW=>.

The rupiah has rallied almost 13.5 percent against the dollar so far this year, followed by the won's 5.5 percent gain.

Indonesia's markets remained shut for holiday.

One-month offshore dollar/peso non-delieverable forwards <PHPNDFOR=> fell to 47.43, implying a 0.2 percent peso fall from the spot compared to no change indicated at Tuesday's close. CURRENCIES VS U.S. DOLLAR Change on the day at 0549 GMT Currency Latest bid Previous day Pct Move Japan yen 90.71 91.13 +0.46 Sing dlr 1.4079 1.4127 +0.34 Taiwan dlr 32.346 32.386 +0.12 Korean won 1194.00 1203.80 +0.82 Baht 33.49 33.61 +0.36 Peso 47.34 47.56 +0.48 Rupee 47.94 47.96 +0.04 Ringgit 3.4600 3.4780 +0.52 Yuan 6.8258 6.8269 +0.02 Change so far in 2009 Currency Latest bid End prev year Pct Move Japan yen 90.71 90.60 -0.12 Sing dlr 1.4079 1.4340 +1.85 Taiwan dlr 32.346 32.860 +1.59 Korean won 1194.00 1259.50 +5.49 Baht 33.49 34.80 +3.91 Peso 47.34 47.52 +0.39 Rupiah 9690.00 11000.00 +13.52 Rupee 47.94 48.71 +1.61 Ringgit 3.4600 3.4500 -0.29 Yuan 6.8258 6.8230 -0.04