Rupiah and peso rebound as U.S. bond yields ease

SINGAPORE, June 14 (Reuters) The Indonesian rupiah and Philippine peso rallied on Thursday after a sell-off the previous session, continuing to track moves in the U.S. Treasury market, where yields retreated as investors' appetite for risk improved.

The high-yielding rupiah rose to 9,015 per dollar, up 0.8 percent from late Asian trade on Wednesday, while the peso , another high-yielder, rose 0.7 percent to 46.4 per dollar.

''At the moment there seems no fundamental factors affecting the rupiah's choppiness. It looks like it might stay in the range between 8,950 and 9,150 for some time,'' a trader in Jakarta said.

The Malaysian ringgit rose a third of a percent to 3.4585 per dollar.

''Dollar buying is seen around 3.44, and selling should be seen around 3.47 all the way to 3.48,'' said a dealer in Kuala Lumpur.

''In the long term, the factors for a stronger ringgit are still there, but we are seeing some short-covering taking place in the short term,'' he said.

The rupiah, peso and ringgit have been hit hard in recent sessions by a surge in U.S. Treasury yields amid fears that global interest rates will rise, which lured investors away from riskier investments.

The yield on benchmark 10-year Treasuries was around 5.22 percent on Thursday, down from a five-year peak of more than 5.3 percent hit on Wednesday.

Reflecting improved sentiment, the MSCI's index of regional shares outside Japan <.msciapj> rose 1.3 percent in early trade.

The Chinese yuan continued its rise against the dollar, hitting a post-revaluation high of 7.6248 per dollar.

Most analysts expect its appreciation to quicken as Chinese leaders try to rebalance the fast-growing economy and in response to heightened pressure from the United States.

A group of U.S. senators unveiled a bill on Wednesday that would give the U.S. authorities more tools to put pressure on China to allow its currency to rise more quickly, after the Treasury declined to brand China a currency manipulator.

CURRENCIES VS U.S. DOLLAR Change on the day at 0257 GMT Currency Latest bid Previous day Pct Move Japan yen 122.71 122.25 -0.37 Sing dlr 1.5413 1.5417 +0.03 Taiwan dlr 33.069 33.039 -0.09 Korean won 929.40 931.30 +0.20 Baht 34.64 34.60 -0.12 Peso 46.44 46.73 +0.64 Rupiah 9031.00 9090.00 +0.65 Rupee 40.97 40.97 +0.00 Ringgit 3.4615 3.4700 +0.25 Yuan 7.6284 7.6360 +0.10 Change so far in 2007 Currency Latest bid End prev year Pct Move Japan yen 122.71 119.01 -3.02 Sing dlr 1.5413 1.5337 -0.49 Taiwan dlr 33.069 32.585 -1.46 Korean won 929.40 0929.50 +0.01 Baht 34.64 36.08 +4.16 Peso 46.44 49.03 +5.59 Rupiah 9031.00 8988.00 -0.48 Rupee 40.97 44.26 +8.03 Ringgit 3.4615 3.5270 +1.89 Yuan 7.6284 7.8051 +2.32 REUTERS SG VC0937