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Sing dlr hits all-time high of 1.2452 to U.S. dlr

* Won up on exporters; down vs yen on macro funds

* Sing dlr down vs ringgit on short-coverings (Updates with text, prices)

By Jongwoo Cheon

SINGAPORE, April 14 (Reuters) - The Singapore dollar hit a record high against the dollar on Thursday as the central bank tightened policy amid continuous signs of robust growth in Asia, helping a rebound in its peers and cementing views that regional authorities will keep making anti-inflation efforts their priority.

Early Thursday, the Monetary Authority of Singapore (MAS) slightly tightened monetary policy sanctioning an immediate rise in the value of its currency to record highs, saying headline inflation will likely stay "elevated". [ID:nL3E7FE0D7]

The MAS, which conducts policy by managing the value of the local dollar against a basket of other currencies, re-centered its exchange rate policy band upwards, though to below the prevailing nominal effective exchange rate.

In a research note, HSBC said that from a regional perspective, the MAS action "still sends a strong signal that inflation is a concern and that other Asian and EM authorities should continue tightening to combat rising inflationary pressure."

It also said "The hawkishness of the MAS should encourage Asian central banks to tighten further through both FX and rates, putting greater downward pressure on USD-Asia, and particularly on USD-SGD, in the coming weeks."

Right after the MAS decision, the Singapore dollar strengthened to an all-time high of 1.2452 per U.S. dollar, but those gains were quickly erased as investors covered short positions in the greenback.

However, the Singapore dollar rose again as investors built up fresh dollar-short positions and hedge funds cited buying the local currency.

Standard Chartered, which had expected MAS to maintain policy unchanged, said leveraged funds should look for chances to buy the Singapore dollar against the greenback.

Pin Ru Tan, emerging markets currency and rates strategist at the Royal Bank of Scotland in Singapore, said "Assuming that the centre has been shifted 1 percent higher, we are still a distance away from the lower bound of USD/SGD. So it is not surprising that fresh short positions are established,"

The emerging Asian currencies have been supported by continuous inflows into the region's stocks and bonds, along with an appetite for higher-yielding currencies.

The regional central banks are expected to sustain their fight against inflation, while their countries grows relaitvely more quickly than others, by raising interest rates and allowing currency while the central banks of the U.S. and Japan are not yet reversing their eased policy.

Earlier, Chinese Premier Wen Jiabao was quoted as saying that China should make its currency more flexible to help rein in price rises driven by imported inflation. [ID:nL3E7FE065]

WON

The won rebounded against the dollar on exporters' demand for settlements after suffering from dollar-short coverings.

"It was confirmed again that corporate sell dollar/won at levels above 1,092," said a foreign bank dealer in Seoul.

Earlier, the South Korean currency weakened to as soft as 1,093.5 on dollar short-coverings of model funds and a short squeeze after the MAS decision.

"Many had built up too many USD/KRW shorts betting on MAS' tightening although the expectations had been priced in the market," said a local bank dealer. The dealer said local players with small Singapore dollar position limits and had used dollar/won to bet on MAS' tightening.

The won also fell against the yen on macro funds' selling with profit-taking hitting yen crosses.

RINGGIT

The ringgit hit its strongest since Oct. 1997 on the MAS tightening and the rise in the Singapore dollar although the Malaysian central bank was spotted buying dollars to check its strength, especially around 3.0180.

The Malaysian currency strengthened to as firm as 3.0110 per U.S. dollar.

The ringgit also touched a 14-month high against the Singapore dollar as European investors covered short Singapore dollar/ringgit positions.

PESO

The peso recovered most of its earlier losses on demand from leveraged accounts.

Earlier, the Philippine currency weakened to as soft as 43.41 per dollar on selling by interbank speculators.

CURRENCIES VS U.S. DOLLAR Change on the day at 0705 GMT Currency Latest bid Previous day Pct Move Japan yen 83.52 83.85 +0.40 Sing dlr 1.2474 1.2559 +0.68 Taiwan dlr 28.981 29.089 +0.37 Korean won 1086.80 1087.80 +0.09 Baht 30.13 30.12 -0.03 Peso 43.22 43.22 +0.00 Rupiah 8655.00 8654.00 -0.01 Rupee 44.50 44.50 +0.00 Ringgit 3.0185 3.0230 +0.15 Yuan 6.5305 6.5340 +0.05

Change so far in 2011 Currency Latest bid End prev year Pct Move Japan yen 83.52 81.15 -2.84 Sing dlr 1.2474 1.2820 +2.77 Taiwan dlr 28.981 30.368 +4.79 Korean won 1086.80 1134.80 +4.42 Baht 30.13 30.14 +0.03 Peso 43.22 43.84 +1.43 Rupiah 8655.00 9005.00 +4.04 Rupee 44.50 44.70 +0.45 Ringgit 3.0185 3.0820 +2.10 Yuan 6.5305 6.5897 +0.91 (Additional reporting by Lee Soo-jung in SEOUL and Catherine Tan of IFR Markets; Editing by Richard Borsuk)

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