* Taiwan dlr up on exporters; intervention caps - traders
* Philippine peso, won gains on short-covering
(Adds text, updates prices)
By Jongwoo Cheon
SEOUL, May 24 (Reuters) - Most emerging currencies rebounded
on Friday on pre-weekend short-covering in choppy trading, but
investors hesitated to chase regional units due to shaky
Japanese financial markets and expectations of a shift in U.S.
monetary policy.
The Taiwan dollar rose on demand from exporters,
while the Philippine peso and the South Korean won
advanced as investors covered bearish bets.
Trading was subdued with financial markets in Singapore,
Malaysia and Thailand closed for holidays.
Still, emerging Asian currencies are unlikely to appreciate
further on growing speculation that the Federal Reserve may
scale back its bond-buying programme and with risk sentiment
fragile, traders and analysts said.
"Concerns over a U.S. monetary policy shift and shaky
Japanese government bonds will prevent Asian currency
appreciation," said Jeong My-young, Samsung Futures research
head in Seoul.
"As we saw yesterday, weak shares and a strong yen will
cause a build-up in long yen/other Asian currency positions,"
Jeong added.
On Wednesday, Fed Chairman Ben Bernanke suggested tapering
of the Fed's stimulus could happen in one of the next few policy
meetings.
The remarks, along with weak China manufacturing data hit
emerging Asian currencies, stocks and Japanese government bonds
on Thursday.
Sentiment for emerging Asian currencies has turned bearish
with the view on the Singapore dollar the most
pessimistic in more than four years, a Reuters poll showed on
Thursday.
Most regional currencies have been weaker so far this year
as investors expect the Fed's potential policy change to reduce
global liquidity and inflows to Asia.
TAIWAN DOLLAR
The Taiwan dollar rose slightly on demand from local
exporters for month-end settlements.
But the currency's upside was capped as the central bank was
spotted intervening, while foreign financial institutions bought
the U.S. dollar, traders said.
The authority also reminded banks to report to the central
bank before selling more than $3 million, they added.
Earlier this week, the central bank urged lenders to limit
their short positions in the greenback in a rare appeal to curb
the Taiwan dollar's strength.
The Taiwan dollar was expected to move between 29.800 to
30.000 against the U.S. dollar, traders said.
PHILIPPINE PESO
The Philippine peso gained as investors covered short
positions in the second worst performing emerging Asian currency
for the week.
The peso has lost 0.9 percent against the dollar so far this
week, compared with a 1.1 percent depreciation in the Indian
rupee, according to Thomson Reuters data.
If those currencies maintain their losses, they would be the
two worst performing emerging Asian currencies of the week, the
data showed.
Trading volume was thin, exaggerating the peso's move,
traders said.
Investors hesitated to add bullish positions in the peso on
expectations of the Fed's policy shift, they added.
A foreign bank trader in Manila said the peso may strengthen
to 41.22 per dollar, the session low of Wednesday, in the next
couple of weeks, noting that investors appear to have hold long
dollar positions to clear.
But the trader said: "given the dollar's bullishness across
the board, it will be a slow grind to get there."
WON
The won advanced as investors reduced long dollar positions,
traders said.
But the South Korean currency gave up some initial gains on
dollar demand from custodian banks and local importers.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0735 GMT
Currency Latest bid Previous day Pct Move
Japan yen 101.55 101.84 +0.29
*Sing dlr 1.2644 1.2630 -0.11
Taiwan dlr 29.911 30.025 +0.38
Korean won 1126.90 1128.70 +0.16
*Baht 29.90 29.93 +0.10
Peso 41.55 41.69 +0.34
Rupiah 9770.00 9769.00 -0.01
Rupee 55.48 55.59 +0.19
*Ringgit 3.0330 3.0330 -0.00
Yuan 6.1301 6.1340 +0.06
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 101.55 86.79 -14.53
Sing dlr 1.2644 1.2219 -3.36
Taiwan dlr 29.911 29.136 -2.59
Korean won 1126.90 1070.60 -5.00
Baht 29.90 30.61 +2.37
Peso 41.55 41.05 -1.20
Rupiah 9770.00 9630.00 -1.43
Rupee 55.48 54.99 -0.89
Ringgit 3.0330 3.0580 +0.82
Yuan 6.1301 6.2303 +1.63
* Financial markets in Malaysia, Singapore and Thailand were
closed for holidays.
(Additional reporting by Jeanny Kao in TAIPEI and Yena Park in
SEOUL; Editing by Jacqueline Wong)
