EM ASIA FX-Won, rupee up on foreign fund flows

 * Won hits a near 7-wk high
 * S.Korea FX authorities' dlr-buying not spotted
 * Peso cuts losses; dlr-short covering appears to be
completed

 (Updates with text, prices)	
 SINGAPORE, March 29 (Reuters) - The South Korean won hit a
seven-week high and the Indian rupee rose on Tuesday, leading
overall gains in Asian currencies, helped by persistent equity
inflows.	
 Foreign investors have been net buyers of Korean stocks for
10 consecutive days -- the longest streak since October 2010 --
and have purchased Indian shares for the past four days, showing
resilience despite Japan's nuclear crisis and military conflict
in Libya, among other risks that have materialised or resurfaced
in the past month.	
 "From a sluggish USD and positive risk mood, USD/Asia ex
Japan is going to stay heavy. There are good opportunities to
pick up positive carry from short NDF (non-deliverable forward) 
positions," said Andy Ji, Asian currency strategist and
economist at Commonwealth Bank of Australia in Singapore.	
 Ji recommended being overweight the won, Malaysia ringgit,
Philippine peso and Indonesian rupiah.	
 He said the won and the peso were fundamentally undervalued,
and added the ringgit and the rupiah were less sensitive to
general risk sentiment to equity flows. Malaysia and Indonesia
are also commodity exporters.	
 	
 WON	
 The won  ended local trading around 1,110.0
per dollar, a level traders said monetary authorities had been
defending since early February. It later rose to around
1,109.70.	
 Despite heightened caution over possible intervention to
check the speed of the won's rise, foreign exchange authorities
were not spotted buying dollars, dealers said.	
 That caused investors to cut dollar-long positions and trip
stoplosses, as investors had expected the authorities to prevent
the won from strengthening past 1,110 per dollar, especially
after they were spotted buying dollars on Friday to weaken it to
levels around 1,114, dealers said.	
 On Friday, the authorities were spotted buying dollars,
especially in the  minutes before the local market closed,
sending the won from 1,112.6 to 1,114, dealers said.	
 	
 RUPEE	
 The Indian rupee climbed, helped by firmer domestic shares
driven by foreign fund inflows, but oil import payments kept a
lid on the gains, traders said.   	
 The main stock index rose for the sixth session as
investors chased bargains after a disappointing performance
since the start of January.  	
 Foreign institutional investors had bought $879.16 million
worth of shares from March 1-28, lowering net sales to $1.3
billion in the year to date.  	
 Traders said there was some demand for dollars from oil
refiners who make their import payments at the close of each
month. India imports more than two-thirds of the oil it consumes
and the refiners are the biggest buyers of dollars in the forex
market.  	
 	
 PESO	
 The peso erased most of its earlier losses, tracking gains
in its Asian peers and as dollar-shot covering petered out.	
 "It looks like the short-covering is over now. Now market is
doing a sell on rally (in dollar/peso) move," said a
Manila-based dealer.	
 Earlier, dollar/peso rose to as high as 43.60 on dollar
demand from importers and as investors covered dollar-short
positions.	
 Expectations for further policy tightening by the central
bank has supported the peso so far this year. However, the
central bank was spotted buying dollars to defend 43.30 in
March, dealers have said, triggering some dollar short covering.	
     	
  CURRENCIES VS U.S. DOLLAR                                  	
  Change on the day at 0730 GMT	
  Currency    Latest bid   Previous day    Pct Move
  Japan yen        81.70          81.67       -0.04
  Sing dlr        1.2606         1.2629       +0.18
  Taiwan dlr      29.470         29.499       +0.10
  Korean won     1109.70        1114.40       +0.42
  Baht             30.30          30.28       -0.07
  Peso             43.46          43.45       -0.02
  Rupiah         8708.00        8712.00       +0.05
  Rupee            44.69          44.83       +0.31
  Ringgit         3.0251         3.0250       -0.00
  Yuan            6.5606         6.5645       +0.06
                                                                                               
  Change so far in 2011                                                                                
  Currency    Latest bid  End prev year    Pct Move
  Japan yen        81.70          81.15       -0.67
  Sing dlr        1.2606         1.2820       +1.70
  Taiwan dlr      29.470         30.368       +3.05
  Korean won     1109.70        1134.80       +2.26
  Baht             30.30          30.14       -0.53
  Peso             43.46          43.84       +0.87
  Rupiah         8708.00        9005.00       +3.41
  Rupee            44.69          44.70       +0.02
  Ringgit         3.0251         3.0820       +1.88
  Yuan            6.5606         6.5897       +0.44
(Additional reporting by Lee Soo-jung in SEOUL and Shamik Paul	
in MUMBAI; Editing by Kim Coghill)	
 	
 	
	
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EM ASIA FX-Won, rupee up on foreign fund flows