* Peso down on dollar short-covering

* Won hits 5-week low; c.bank chief concerned over yen/won

* Won ignores c.bank decision to keep rates steady

(Adds text, updates prices)

By Jongwoo Cheon

SINGAPORE, Sept 12 (Reuters) - Most emerging Asian currencies are set for another week of losses on growing expectations the U.S. Federal Reserve may signal an earlier-than-expected rate increase next week.

The Philippine peso PHP=PDSP hit a five-week low on Friday after an expected central bank interest rate hike prompted investors to unwind positions built up on expectations of tightening. The Philippine central bank raised its policy and special deposit account rates by 25 basis points on Thursday.

South Korea's won KRW=KFTC also fell to its weakest in five weeks against the dollar as offshore hedge funds sold it following the central bank chief's concerns over the won's strength against the yen JPYKRW=R . The currency market ignored the Bank of Korea's decision to keep interest rates steady as widely predicted. ID:nL3N0RC26F

Short-term speculators sold the Malaysian ringgit MYR=MY . The Thai baht THB=TH eased on foreign selling in stock and bond markets.

The dollar .DXY hovered near a 14-month high against a basket of major currencies ahead of the Fed's policy review on Sept 16-17 amid some expectations that the U.S. central bank may indicate an earlier rate hike.

With such caution, emerging Asian currencies are likely to ease further next week, analysts and traders said.

"Asia FX will see more corrections ahead of the Fed with the dollar seen rising further on caution over a possible signal," said Yuna Park, a currency and bond analyst at Dongbu Securities in Seoul.

"By contrast, Asia FX will jump if the Fed provides nothing special. The dollar is seen excessively bought."

Sentiment on regional currencies already turned bearish in the last two weeks, a Reuters poll showed on Thursday. ID:nB9N0ND021

So far this week, the South Korean currency has lost 1.4 percent against the dollar as the foreign exchange authorities were earlier this week suspected of intervening to stem its appreciation.

On Tuesday, the won hit a six-year high against the yen, raising concerns that South Korea may lose price competitiveness in overseas markets against Japan.

India's rupee INR=D2 has followed the won with a 0.9 percent loss.

The Singapore dollar SGD=D3 has fallen 0.8 percent, which would be the largest weekly loss since mid-January, according to Thomson Reuters data, on concerns over an economic slowdown in the city-state.

The peso has slid 0.7 percent. The ringgit and the baht have lost 0.5 percent each.

China's yuan CNY=CFXS bucked the trend with a 0.1 percent gain so far this week on improving sentiment toward the currency. CNY/

PHILIPPINE PESO

The peso lost as much as 0.5 percent for the day to 44.06 per dollar, its weakest since Aug. 8, as investors rushed to cover short positions in the dollar.

But the Philippine currency recovered some of its losses on expectations that the central bank may tighten further as it raised inflation forecasts for 2014-2016.

On Thursday, the Bangko Sentral ng Pilipinas raised both its policy rate and the rate on its special deposit accounts, in its most aggressive move to curb inflation amid buoyant economic growth. It was the first time the central bank adjusted both rates at one go.

"The market may be positioning for further tightening ahead," said Credit Agricole CIB in a client note.

WON

The won fell as much as 0.5 percent to 1,040.9 per dollar, its weakest since Aug. 8, on selling from offshore hedge funds. The South Korean currency also eased against the yen.

Earlier, Bank of Korea Governor Lee Ju-yeol expressed worries about its strength against the Japanese currency.

"Should Japanese exporters start marketing campaigns in earnest and really begin to compete with prices by lowering product prices it could affect our exports badly," Lee told a news conference after the central bank's policy meeting.

South Korean exporters bought the won on dips for settlements as the currency has a chart support at 1,043.7 per dollar, a 200-day moving average.

The currency has been firmer than the average since September 2013.

CURRENCIES VS U.S. DOLLAR

Change on the day at 0450 GMT Currency Latest bid Previous day Pct Move Japan yen 107.28 107.10 -0.17 Sing dlr 1.2638 1.2635 -0.02 Taiwan dlr 30.006 30.060 +0.18 Korean won 1038.90 1036.10 -0.27 Baht 32.22 32.18 -0.14 Peso 43.97 43.86 -0.26 Rupiah 11820.00 11820.00 +0.00 Rupee 60.90 60.93 +0.04 Ringgit 3.1985 3.1930 -0.17 Yuan 6.1328 6.1300 -0.05

Change so far in 2014 Currency Latest bid End prev year Pct Move Japan yen 107.28 105.28 -1.87 Sing dlr 1.2638 1.2632 -0.05 Taiwan dlr 30.006 29.950 -0.19 Korean won 1038.90 1055.40 +1.59 Baht 32.22 32.86 +1.99 Peso 43.97 44.40 +0.97 Rupiah 11820.00 12160.00 +2.88 Rupee 60.90 61.80 +1.48 Ringgit 3.1985 3.2755 +2.41 Yuan 6.1328 6.0539 -1.29

(Additional reporting by IFR Markets' Catherine Tan; Editing by Jacqueline Wong) ((jongwoo.cheon@thomsonreuters.com)(+65 6870-3841)(Reuters Messaging: jongwoo.cheon.thomsonreuters.com@reuters.net))

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Double click on brackets for following items: Asian currencies AFX= Asian currencies in Asia AFX=A Malaysian ringgit MYRX= Indonesian rupiah IDRX= Singapore dollar SGDX= Thai baht THBX= Taiwan dollar TWDX= Hong Kong dollar HKDX= Philippine peso PHP= Korean won KRW= SPEED GUIDES MONEY ASEAN= Exotic currencies EXOTIC/1 Non-G7 currencies CCY/1 RELATED NEWS AND OTHER TOPICS All Singapore news SG All Malaysian news MY Thailand TH Indonesia ID Hong Kong HK Taiwan TW Philippines PH Korea KR All emerging markets EMRG All foreign exchange news FRX Foreign exchange technical analysis FRX&INSI ))

Keywords: MARKETS ASIA FOREX/