Emerging FX-Peso and rupiah fall as risk aversion flares

SINGAPORE, Aug 1 (Reuters) The high-yielding Philippine peso and Indonesian rupiah led declines in most Asian currencies on Wednesday as investores shunned riskier assets amid fears of a further deterioration in the U.S credit markets.

The high-yielding peso slipped as low as 45.65 per dollar, down nearly 0.7 percent from Tuesday's close.

''There are still some risk concerns, which are pushing the dollar higher against the peso right now,'' said a trader in Manila.

''I think the peso is going to get weaker against the dollar up to November. I'm looking to 46.50,'' he said.

The rupiah , another high-yielder in Asia, fell as far as 9,246 per dollar, down 0.5 percent from late Asian trade on Tuesday but still off a five-month low of 9,254 hit on Monday.

The rupiah has fallen 2.8 percent versus the dollar so far this year, making it the worst-performing currency in Asia.

''Any hope of an accelerating rupiah recovery below 9,000 per dollar should be put on ice for now, even if positive foreign inflows are expected on the back of upcoming Indonesian initial public offerings,'' JPMorgan analysts said in a note.

Analysts polled by Reuters expected Indonesia's annual inflation rate to be flat at 5.72 percent in July after 5.77 percent in June.

The government is due to release the data on Wednesday.

Other Asian currencies were mostly weaker versus the dollar, with the Malaysian ringgit falling 0.5 percent to 3.47 per dollar and the Singapore dollar also losing half a percent to 1.519 per U.S. dollar.

MSCI's measure of Asia Pacific stocks excluding Japan <.miapj0000pus> fell 1.2 percent after a slide in U.S. stocks on Tuesday amid concerns about the U.S. credit markets.

The latest Reuters poll showed that investors reduced long positions in most Asian emerging market currencies in the second half of July as the fallout in the U.S. subprime mortgage sector prompted risk aversion.

REUTERS AE PM