Emerging Asia FX-Inch lower on profit taking

SINGAPORE, Sep 6 (Reuters) Asian currencies inched down on Wednesday as the Japanese yen retreated and investors took profits on this week's sharp gains.

A rise in the yen and Chinese yuan had pushed regional currencies to multi-week highs on Tuesday, but dealers said the market was now pausing, while wariness about central bank intervention to curb currency strength remained.

The yen eased more than half a percent from 2-week highs near 115.60 per dollar hit the previous day, and the yuan , which hit a post-revaluation high on Tuesday, inched lower.

The Philippine peso fell about a fifth of a percent from Tuesday's 4-year peak of 50.33 per dollar. Central bank Governor Amando Tetangco said on Tuesday the strong peso posed a risk to inflation because of the additional supply of funds.

The Malaysian ringgit eased to about 3.6485 per dollar, down about a quarter of a percent from a two-month high hit on Tuesday, while the Singapore dollar was a touch lower at about 1.5665 to the U.S. dollar, but within sight of this week's 3-{ month highs.

''There has been strong buying in the last few days, so there is just profit taking now,'' said Singapore dollar trader. ''There may be some intervention later on.'' The Thai baht was steady at about 37.35 per dollar, hugging a tight range before a Bank of Thailand interest rate decision, which is due around 0730 GMT.

Thailand's central bank is tipped to keep interest rates steady as inflation declines and it is expected to cut them in the first half of 2007 due to a weaker economy.

''We suspect that event risk in the shape of the scheduled general election in October will prevent BOT from cutting rates at this juncture despite some weakness in domestic consumption and investment indicators, and thus see Thailand's benchmark interest rate left unchanged at 5.0 percent this week,'' said ABN AMRO senior currency strategist Shahab Jalinoos in a note.

In Indonesia, meanwhile, news late on Tuesday that the government sold its 25.9 stake in the country's seventh largest lender, PT Bank Permata , was in focus.

The sale of the stake raised a total of 1.76 trillion rupiah (3.9 million) and the buyers included Standard Chartered Bank and Indonesia's automotive giant Astra International , both existing shareholders in the bank.

''The deal is positive for the rupiah,'' said a trader in Jakarta. ''Yesterday's rate decision was priced in but it is still seen as positive and bonds have been doing well.'' Bank Indonesia on Tuesday cut its one-month policy rate by 50 basis points, as many in the market had expected.

Reuters KR DB1002