Emerging FX-Ringgit leads Asian weakness ahead of US jobs

SINGAPORE, July 6 (Reuters) The Malaysian ringgit was Asia's worst performer on Friday as falling local bond prices and the dollar's rebound ahead of U.S. jobs data weighed on the regional currencies.

Quoted at 3.4550 per dollar, the normally slow-moving ringgit has fallen 0.8 percent in three trading sessions.

Foreign investors were pulling out of Malaysian assets -- a bond market where falling prices have caused 10-year yields to rise 25 basis points in less than a week, and a lacklustre stock market, one ringgit trader said.

''There are a few reasons :firming global yields, talk of some adjustments by foreign investors in domestic bonds, a market final ly conviced that Bank Negara is not about to cut rates, and a ri nggit that is not expected to move significantly in the very near term,'' said Emmanuel Ng, strategist at OCBC Bank.

The dollar pulled back from a 26-year trough against sterling and rallied against the yen after strong U.S. services data gave rise to expectations Friday's non-farm payrolls data might exceed estimates and ease concerns that the Federal Reserve might need to cut rates later this year.

The dollar had weakened in the past week as investors bought into the view that U.S. rates will be steady for the rest of the year.

The Bank of England raised rates, as markets had expected, on Thursday and the European Central Bank endorsed expectations for a rate rise in the euro zone in September.

The dollar's recovery weakened most of the Asians. The Philipppine peso shed a quarter of a percent and hit 46.26 per dollar.

The Indonesian rupiah also eased to levels around 9,030 a dollar, a day after Bank Indonesia cut policy rates for the 13th time and said it had room to relax policy further.

CURRENCIES VS U.S. DOLLAR Change on the day at 0333 GMT Currency Latest bid Previous day Pct Move Japan yen 122.96 122.54 -0.34 Sing dlr 1.5199 1.5213 +0.09 Taiwan dlr 32.840 32.789 -0.16 Korean won 920.40 921.90 +0.16 Baht 34.00 33.98 -0.06 Peso 46.20 46.09 -0.24 Rupiah 9024.00 9020.00 -0.04 Rupee 40.47 40.43 -0.10 Ringgit 3.4530 3.4455 -0.22 Yuan 7.6035 7.5959 -0.10 Change so far in 2007 Currency Latest bid End prev year Pct Move Japan yen 122.96 119.01 -3.21 Sing dlr 1.5199 1.5337 +0.91 Taiwan dlr 32.840 32.585 -0.78 Korean won 920.40 929.50 +0.99 Baht 34.00 36.08 +6.12 Peso 46.20 49.03 +6.13 Rupiah 9024.00 8988.00 -0.40 Rupee 40.47 44.26 +9.35 Ringgit 3.4530 3.5270 +2.14 Yuan 7.6035 7.8051 +2.65 REUTERS RC ND0958