Fed, China policy speculation bolster emerging Asia currencies

SINGAPORE (Reuters) - Most emerging Asian currencies rose on Wednesday helped by doubt over the timing of a U.S. interest rate rise and on media reports saying China's central bank is providing liquidity to support the economy. Regional units pared some of their earlier gains with the dollar broadly firm as investors awaited the U.S. Federal Reserve's latest guidance on interest rates later in the day. Worries about an earlier-than-expected rate hike by the Fed eased after the Wall Street Journal's Fed watcher said the U.S. central bank may keep the words "considerable time" in its policy statement after the Tuesday-Wednesday meeting. Malaysia's ringgit gained as investors covered short positions ahead of inflation data later in the day. The country's central bank is also set to review monetary policy on Thursday, with economists divided on a further rate hike. The South Korean won ended local trade higher against the dollar amid market talk of demand from a major U.S. asset management company for two-year monetary stabilisation bonds. Against the yen, the won hit a six-year high. South Korea's foreign exchange authorities were suspected of intervening to stem the won's strength, traders said. Indonesian's rupiah edged up as Jakarta shares rose 1.2 percent, far outperforming Southeast Asian peers. The Thai baht showed little reaction after the Bank of Thailand left interest rates unchanged, as widely expected. The Singapore dollar bucked the regional appreciation trend despite stronger-than-expected August exports data as shipments to major economies slowed. (Reporting by Jongwoo Cheon and Masayuki Kitano; Editing by Jacqueline Wong)