Rupiah, Singapore dollar lead Asia rebound

SINGAPORE, May 14 (Reuters) The Indonesian rupiah bounced back on Monday as investors returned to riskier high-yielding assets after Friday's sell-off, while the Singapore dollar and South Korean won also rebounded.

The rupiah rose as far as 8,765 per dollar, gaining more than 0.8 percent from late Asia trade on Friday, when the high-yielding unit took a hit as falling stock markets prompted investors to dump emerging-market assets.

''It seems that risk aversion has dissipated quickly in Asia, with the search for yield back in play for now,'' said Emmanuel Ng, currency strategist at OCBC Bank.

Investors turning to higher-yielding currencies were encouraged by robust New Zealand consumer spending data.

The New Zealand dollar jumped nearly half a percent after a report showed retail sales rose 3.8 percent in the first quarter from the previous quarter, the strongest rise since the data series began in 1995.

The Singapore dollar rose as far as 1.5131 to the U.S.

dollar, up nearly 0.5 percent from late Asia trade on Friday.

It also hit its highest in almost a week.

The South Korean won rose to as far as 924.30 per dollar, ending four straight sessions of decline.

It was helped by dollar weakness against the euro after data on Friday showed a surprise fall in U.S. retail sales, underlining concerns about the outlook for growth in the world's biggest economy.

Philippine markets are closed on Monday for congressional elections.

Despite the strong rebound on Monday, Thio Chin Loo, currency strategist at BNP Paribas, said it was not certain Asian currencies would continue to rise in the short term.

''I reckon that volatility in the markets may persist.

Hence, its not all clear for Asian currencies to move higher. I would see profit-taking as Asian currencies trade higher, but the medium-term bull trend for Asians stays intact,'' she said.

The yuan rose to 7.6714 per dollar, its highest since the 2005 revaluation.

China's trade surplus in April rebounded from March and reinforced expectations that Beijing will come under renewed pressure in economic talks in Washington on May 22-24 to allow the yuan to rise at a faster pace.

Still, yuan appreciation has accelerated in the past two weeks. It has gained nearly 0.7 percent since April 26, bringing its cumulative appreciation so far this year to about 1.7 percent.

CURRENCIES VS U.S. DOLLAR Change on the day at 0227 GMT Currency Latest bid Previous day Pct Move Japan yen 120.11 119.85 -0.22 Sing dlr 1.5135 1.5202 +0.44 Taiwan dlr 33.330 33.300 -0.09 Korean won 924.60 926.60 +0.22 Baht 34.52 34.52 +0.00 Peso 47.12 47.18 +0.12 Rupiah 8775.00 8840.00 +0.74 Ringgit 3.4015 3.4070 +0.16 Yuan 7.6741 7.6766 +0.03 Change so far in 2007 Currency Latest bid End prev year Pct Move Japan yen 120.11 119.01 -0.92 Sing dlr 1.5135 1.5337 +1.33 Taiwan dlr 33.330 32.585 -2.24 Korean won 924.60 0929.50 +0.53 Baht 34.52 36.08 +4.52 Peso 47.12 49.03 +4.05 Rupiah 8775.00 8988.00 +2.43 Rupee 41.21 44.26 +7.39 Ringgit 3.4015 3.5270 +3.69 Yuan 7.6741 7.8051 +1.71 REUTERS PYB