EM ASIA FX-Baht rebounds, intervention talk caps Singapore dlr

* Baht rebounds from 2-week low in line with local stocks

* Singapore dollar firms, but capped by intervention talk

* Ringgit falls from 14-month high as investors book profits

SINGAPORE, Oct 16 - The Thai baht rebounded on Friday in step with local stocks after two days of losses sparked by concerns over the health of the country's king, while the Singapore dollar's gains were limited by talk of official intervention.

The yen stayed under broad pressure as investors cut some of their long positions, while sterling approached its highest level in three weeks following upbeat central bank comments.

BAHT

The baht rebounded to 33.37 per dollar from its two-week low of 33.61 hit on Thursday, in line with a bounce back in stocks after a palace official said the king's health was improving.

The palace official said on Thursday that the 81-year-old king was on the mend but he would still need protracted physical therapy. He has been in hospital for nearly a month and is recovering from pneumonia.

Finance Minister Korn Chatikavanij said on Friday that Thailand has no need to adopt special measures to support the stock market after its biggest fall in a year, and added that he expected the country's economic fundamentals to remain sound.

"The baht would probably hover around this level with the focus on the stock market. If stocks face a renewed broad sell-off, baht will follow," said a trader.

Other dealers said many investors may protectively close out FX positions ahead of the weekend.

SINGAPORE DOLLAR

The Singapore dollar drifted towards 1.388 per U.S. dollar, but its upside was contained by talk of official intervention.

"We see good two way interest with market rumours the authority is supporting the U.S. dollar at 1.3880," said a trader.

On Thursday, traders suspected official intervention as the Singapore dollar rose to 1.3856, its highest since August 2008.

Singapore dollar has gained 4 percent since early Sept. as part of an Asia-wide rally against the beleaguered U.S. currency. Earlier this week, Singapore's central bank kept its zero appreciation stance on hold and sounded wary on the country's economic outlook.

RINGGIT

The ringgit eased to 3.37 per dollar, down 0.4 percent from Thursday, when it hit a 14-month high.

"Obviously the market is very short dollars, people are squaring up as we go into weekend," said a trader.

The ringgit is set to gain 0.7 percent this week, slowing from its 2 percent jump in the previous week -- the sharpest rally this year. CURRENCIES VS U.S. DOLLAR Change on the day at 0543 GMT Currency Latest bid Previous day Pct Move Japan yen 90.91 90.55 -0.40 Sing dlr 1.3914 1.3900 -0.10 Taiwan dlr 32.259 32.218 -0.13 Korean won 1160.10 1155.10 -0.43 Baht 33.40 33.49 +0.27 Peso 46.43 46.33 -0.22 Rupiah 9365.00 9325.00 -0.43 Rupee 46.27 46.23 -0.09 Ringgit 3.3720 3.3560 -0.47 Yuan 6.8269 6.8287 +0.03 Change so far in 2009 Currency Latest bid End prev year Pct Move Japan yen 90.91 90.60 -0.34 Sing dlr 1.3914 1.4340 +3.06 Taiwan dlr 32.259 32.860 +1.86 Korean won 1160.10 1259.50 +8.57 Baht 33.40 34.80 +4.19 Peso 46.43 47.52 +2.35 Rupiah 9365.00 11000.00 +17.46 Rupee 46.27 48.71 +5.27 Ringgit 3.3720 3.4500 +2.31 Yuan 6.8269 6.8230 -0.06