* Peso outperforms Asian peers, won hits 4-month high
* Bullish baht down on profit-taking
* Dollar leaps above 85 yen on rumour BOJ is back
* Buying of exporters helps Nikkei cut losses
By Vithoon Amorn
BANGKOK, Sept 24 (Reuters) - The Philippine peso outperformed Asian peers and the Korean won hit a four-month high on Friday as the dollar came under fresh pressure and the Bank of Japan (BOJ) was suspected of stepping again in to curb the yen's strength.
Against the yen, the dollar rebounded to a session high around 85.38 minutes after trading at 84.50, with dealers citing talk of more BOJ intervention after last week when it stepped in for the first time since 2004.
A post-intervention low of 84.26 yen was hit on Thursday.
BOJ had been expected to re-enter the market after its heavy yen-selling intervention last week though pressure on the dollar from the risk of more monetary easing by the Federal Reserve and falling U.S. yields made them wonder about the timing. Japan's Nikkei share average was down 1.0 percent, cutting earlier losses with big exporter stocks like Toyota and Honda among the biggest supports to the index.
The MSCI index of Asia Pacific stocks outside Japan was steady. Spot gold was mostly unchanged at $1,293.65 an ounce as disappointing data from the U.S. and Europe renewed concern over the economic recovery.
PESO
The Philippine peso outperformed Asian peers, gaining nearly a quarter percent to around 44.03 per dollar, but any further rally was expected to run into strong resistance at 43.88 which the central bank has defended in the past two days.
"The dollar selling today is probably part of weekend flows. Asia is persistently strong despite all the negativity in the markets like sovereign risk from Ireland and the mixed stock performance. BSP has not been spotted today and I think the peso's bullish tone will continue next week," a Manila-based trader said.
Spot dollar/peso was bid at 44.02 at 0613 GMT against 44.12 late on Thursday. Spot peso has gained 3.0 percent against the dollar in the past month and 5.0 percent this year.
Short-end dollar/peso NDFs of up to six-month maturities were down, with the most liquid one-month NDFs falling to 44.16, some 9 points lower than the spot and implying a 0.3 percent peso fall from the spot.
WON
The South Korean won rose to a four-month high against the dollar as the U.S. currency remained under pressure from market expectations that the Federal Reserve might resort to monetary easing.
The won rose as high as 1,154.2 per dollar, a high since its highest level of 1,145.7 on May 18. Its domestic close on Monday was 1,161.3. The Seoul foreign exchange market resumed trading on Friday after three-days of public holidays.
BAHT
The Thai baht fell one third of a percent to 30.78-79 per dollar by early afternoon on profit-taking prompted by a euro slide and mixed Asian stock performance, traders said.
"The baht has outperformed other Asian currencies and it is just consolidating ahead of the weekend. Some people also see the fall as a spillover from the stalled 3G issue, which may weigh down the Thai stock market today," a Bangkok-based dealer said.
Dollar/baht was bid at 30.75 at 0613 GMT against 30.67 late on Thursday. The baht has gained 8.4 percent against the dollar this year, the third-best Asian performer after the ringgit and yen.
RUPEE
The Indian rupee rose in early trade after the Indian government raised cap on foreign investment in debt.
The partially convertible rupee was at 45.56/57 at 0523 GMT, off its early high of 45.51 but stronger than its 45.64/65 close on Thursday.
The government increased the cap on foreign investment in government and corporate bonds by $5 billion each to $10 billion and $20 billion, respectively.
Indian stocks flip-flopped in the morning amid subdued cues from Asian markets.
Foreign investors have bought $4.4 billion of Indian stocks this month, taking their net investment in 2010 to $17.3 billion, just short of a record high of $17.5 billion in 2009. CURRENCIES VS U.S. DOLLAR Change on the day at 0610 GMT Currency Latest bid Previous day Pct Move Japan yen 84.82 84.35 -0.55 Sing dlr 1.3277 1.3290 +0.10 Taiwan dlr 31.545 31.600 +0.17 Korean won 1154.20 1156.80 +0.23 Baht 30.76 30.67 -0.29 Peso 44.02 44.12 +0.23 Rupiah 8950.00 8958.00 +0.09 Rupee 45.55 45.64 +0.21 Ringgit 3.0965 3.0930 -0.11 Yuan 6.7060 6.7079 +0.03 Change so far in 2010 Currency Latest bid End prev year Pct Move Japan yen 84.82 92.90 +9.53 Sing dlr 1.3277 1.4053 +5.84 Taiwan dlr 31.545 32.030 +1.54 Korean won 1154.20 1164.50 +0.89 Baht 30.76 33.32 +8.32 Peso 44.02 46.20 +4.95 Rupiah 8950.00 9420.00 +5.25 Rupee 45.55 46.54 +2.17 Ringgit 3.0965 3.4220 +10.51 Yuan 6.7060 6.8270 +1.80 (Additional reporting by Elaine Lies in TOKYO, Suvashree Dey Choudhury in MUMBAI and Yoo Choonsik in SEOUL)