Emerging FX-High-yielding rupiah and peso bounce back

SINGAPORE, June 12 (Reuters) The Indonesian rupiah and Philippine peso rebounded on Tuesday as investors' appetite for risk and high-yielding currencies recovered after a sell-off last week.

Other Asian currencies also had a firm tone, despite a broadly stronger dollar.

The rupiah rose as far as 9,005 per dollar, up one percent from late Asian trade on Monday. It slipped 3 percent last week amid market jitters over rising global interest rates.

''We expect range trading between 9,000 to 9,050 today. The market is mixed at the moment, it just followed other regionals -- ringgit and peso,'' said a trade in Jakarta.

''We saw a lot of foreign buying yesterday, but that's not significant today. We see state banks bidding today, probably for their customers,'' she said.

The peso gained about half a percent to 46.32 per dollar.

It also took a hit last week from higher risk aversion triggered by sharply higher U.S. bond yields.

''High-yielding currencies are in play again, despite the dollar strength against G7 currencies. Also, risk-taking seems to be back with stock stabilisation and good growth numbers,'' said Thio Chin Loo, a currency strategist at BNP Paribas.

The Malaysian ringgit , which has retreated sharply in recent sessions, rose almost 0.5 percent to 3.4555 per dollar, while the Chinese yuan rose nearly a quarter of a percent to 7.6455 per dollar.

The yuan was in focus again after a group of U.S. senators announced plans on Monday to unveil a bill aimed at putting pressure on China to let its currency appreciate faster.

''Our view on the yuan remains for a faster appreciation, but not so much from external pressures, but on domestic needs,'' analysts at DBS said in a research note.

''China needs to allow more yuan appreciation to augment measures to cool its overheating stock markets and economy.'' DBS expects the yuan to appreciate to 7.35 to the dollar by the end of this year, representing a full-year appreciation of 6.5 percent compared to last year's 3.4 percent.

Reuters SG DB0945