EM ASIA FX-Rupiah, won lead rally, G20-spurred positioning

* Rupiah at highest in more than a week against dollar

* Korean won clocks best weekly gains in a month

* Indian rupee discount in onshore forwards evaporates

SINGAPORE, Nov 6 - The Indonesian rupiah hit its highest in more than a week against the dollar and the Korean won clocked its best weekly gains in a month as Asian currencies extended their gains on Friday, positioning for an upcoming G20 meeting.

The rally occurred even as the risk of a surprise from the U.S. jobs report later in the day kept the dollar, euro and yen in tight and listless ranges.

Leaders of the Group of 20 nations meet on Nov. 6 and 7 in Scotland, where they seek to firm up a plan to rebalance the world economy.

While currencies are not expected to be a topic at that meeting, traders presumed the discussion would have to include a mention of the need for Asian currencies to rise as part of the process of rebalancing global trade.

KOREAN WON

The South Korean won <KRW=> extended gains against the dollar as investors cleared dollar-long positions to stop losses with exporters, chasing the local currency for settlements. The Korean central bank was suspected of intervening towards close of trade, to rein the won in.

The won gained more than a percent, effectively erasing losses at the start of the week and ending the week 1.2 percent firmer against the dollar at levels around 1,167 per dollar.

"Continuous exporter deals prompted investors to clear dollar-long positions," said a trader in Seoul.

INDIAN RUPEE

Premium on the dollar in Indian rupee onshore forwards dropped on Friday as the rupee rallied. The one-month premium fell to its lowest in more than a year, yet there was sufficient arbitrage opportunity in the rupee non-deliverable forward market, where the dollar has been in a discount.

"There is a lot of dollar selling happening in the NDF market due to the expectation that Asian currencies would continue to rally against the dollar, on the back of rise in global equities and non-action by the Fed," said a trader at a foreign bank in Mumbai.

Dollars were traded at a discount of 2 paise in the 1-month NDF at 46.80/USD and at a premium of 7 paise in the onshore forward. The spot rupee firmed to 46.755, gaining nearly half a from its previous close.

"The G20 finance ministers are meeting over the weekend. They are expected to put pressure on Asia to allow their currencies to strengthen," said another trader.

"The NDFs are likely positioning for this. If nothing comes out of G20 and if U.S. payroll numbers are bad, these positions will get reversed next week."

PHILIPPINE PESO

The Philippine peso <PHP=> joined the rally, spurred by growing appetite for emerging market risk assets and a boost for the local currency from expected weekend inflows of foreign remittances.

"The global risk appetite is weighing down on dollar, prompting offshore players to sell in the NDF market," a Manila-based trader said.

"Local onshore guys sell the expected incoming remittances over the weekend as well. Offshore markets are betting that peso and other Asian currencies will appreciate further."

The peso rose as far as 47.24, rallying from a 47.63 close on Thursday. Three-month peso NDFs have fallen 0.8 percent in the past three sessions to 47.75 pesos per dollar. CURRENCIES VS U.S. DOLLAR Change on the day at 0419 GMT Currency Latest bid Previous day Pct Move Japan yen 90.44 90.74 +0.33 Sing dlr 1.3928 1.3950 +0.16 Taiwan dlr 32.477 32.536 +0.18 Korean won 1167.10 1179.80 +1.09 Baht 33.36 33.40 +0.12 Peso 47.23 47.63 +0.86 Rupiah 9445.00 9500.00 +0.58 Rupee 46.84 47.02 +0.38 Ringgit 3.4060 3.4200 +0.41 Yuan 6.8275 6.8276 +0.00 Change so far in 2009 Currency Latest bid End prev year Pct Move Japan yen 90.44 90.60 +0.18 Sing dlr 1.3928 1.4340 +2.96 Taiwan dlr 32.477 32.860 +1.18 Korean won 1167.10 1259.50 +7.92 Baht 33.36 34.80 +4.32 Peso 47.23 47.52 +0.62 Rupiah 9445.00 11000.00 +16.46 Rupee 46.84 48.71 +3.99 Ringgit 3.4060 3.4500 +1.29 Yuan 6.8275 6.8230 -0.07