Emerging Asia FX-Up on stocks, softer US rates stance

SINGAPORE, Oct 26 (Reuters) The Singapore dollar hit a seven-week high and other Asian currencies rose on Thursday after the U.S. Federal Reserve hinted at an easier monetary stance than markets had expected and regional stock markets rose.

The Thai baht extended its rally to a fresh high of 37.01 per dollar, its strongest since January 2000, disregarding the Bank of Thailand's warning on Wednesday that the currency had risen too fast.

The Singapore dollar hit a high of 1.5701 per U.S. dollar, taking its gains in four sessions to half a percent.

Jimmy Koh, currency strategist at United Overseas Bank, said his estimates showed the Singapore dollar was 2.15 percent stronger than the centre of the Monetary Authority of Singapore's nominal-effective-exchange-rate (NEER) band for the currency.

The details of the band are kept secret so analysts run their own estimates to gauge the currency's movement.

''I have not heard of them in the market but I think these are levels we should see them, based on our model,'' Koh said, referring to possible MAS intervention.

Analysts said a record breaking rally in the Straits Times Index was one reason for the Singapore dollar's rise, as was fresh speculative interest in Asia from funds which trade using trend-based models. Still, the currency remained at threat from intervention, they said.

''Sing dollar NEER is way strong no matter how you add it up. Intervention threat is surely reasonably high,'' said Sean Callow, Westpac Bank's currency strategist.

FED AND STOCKS Overnight, the U.S. Fed kept rates steady for a third straight meeting and said it saw economic growth moderating and some easing in inflation pressures.

That and the softness in U.S. housing market data undermined the dollar broadly, pulling the yen to the stronger side of 119 per dollar.

Stock markets from Taiwan to Singapore were between 0.3 to 0.7 percent higher, inspired by a firm Wall Street which took the Dow Jones industrial average to a record high on Wednesday.

The baht was propped up by foreign investment inflows into stocks, which are more than a net 15 billion baht (4 million) so far this month.

South Korea's won added another 0.4 percent to this week's rally, heading close to 951 per dollar.

The rupiah gained half a percent as Indonesian markets reopened after holidays on Tuesday and Wednesday.

Reuters LL DS1350