SINGAPORE -- The Philippine peso fell to two-week lows and other Asian currencies dipped Monday, undermined by a renewed rise in oil prices and nervousness over US and regional monetary policy meetings this week.

Analysts expected the Federal Reserve to hold interest rates at its monetary policy review on Tuesday, but saw Indonesia's central bank raising rates by 25 basis points to 9.0 percent on the same day in its bid to battle inflation.

The US dollar dipped against the yen on falling global stocks Monday and gave up some of its gains against the euro after hitting a five-week high last week following data which showed US employers cut fewer-than-expected jobs in July.

The Philippine peso, an oil-sensitive currency, fell by 0.6 percent to a two-week low of 44.48 per dollar in morning trade as US benchmark crude oil hovered around $126 per barrel Monday due to jitters about Iran's nuclear activities and violence in Nigeria.

Crude rose to more than $126 a barrel Monday, continuing an uptrend in prices since hitting close to its lowest level in three months last week at $120.42.

"The peso is tracking the oil move," a Manila-based trader said.

The South Korean won initially fell as much as 0.4 percent to 1,018.40 per dollar, its weakest since July 22, but traders later said authorities had intervened by selling over $300 million to prop up the won.

The currency steadied around 1,016 after the suspected support.

The won was pressured lower by growth concerns over higher oil prices, which outweighed expectations some investors have of an interest rate rise when the Bank of Korea (BOK) meets on Thursday to review its monetary policy.

"BOK rhetoric has been consistent in the last month on the primacy of the inflation objective," ING economist Tim Condon said in a note.

"We think a failure to hike at Thursday's policy meeting would undermine confidence in their commitment, which could trigger won selling pressure and undermine what the authorities were trying to accomplish by ending the weak-won policy."

Losses in regional stocks also pressured Asian currencies. The Taiwan dollar fell by 0.3 percent to 30.7440, its weakest since May 16, while the Singapore dollar dropped by a similar margin.

BANK INDONESIA RATE HIKE SEEN

Despite expectations of a rate increase in Indonesia, the rupiah's upside was capped, keeping the currency steady on the day close to a five-month high around 9,095.

"Everyone still loves to carry this currency, but the Bank of Indonesia protects its upside everyday so it trades in ranges," a trader in Jakarta said.

After Indonesia's annual inflation in July hit a near two-year high of 11.9 percent, analysts polled in a Reuters survey unanimously said they expected a quarter-percentage point rate rise in the meeting on Tuesday.

"We think anything less than a 25-basis-points hike at the policy meeting on Tuesday could turn the tide on the rupiah," analysts at UBS said.

The rupiah has risen considerably in the past two months, gaining 2.4 percent in the period. The currency has appreciated by 3.2 percent this year.

The European Central Bank and the Reserve Bank of Australia are also scheduled to meet this week. Both are expected to keep rates unchanged.