SINGAPORE, May 23 (AFP) - Most Asian currencies, backed by strong economic recovery in the region, are expected to stave off pressure from the US dollar's anticipated rise against the yen. "The immediate outlook for regional currencies remains extremely favourable," said Desmond Supple, senior analyst at Barclays Capital in Singapore. His optimism was based on, among other factors, continuing inflows through current account surpluses and investments into asset markets amid growing economic recovery expectations. "The recovery story will continue to attract investors," Supple said. Several economies which contracted sharply last year, including Malaysia, Thailand and South Korea, have posted positive growth figures since the fourth quarter of 1998. Many analysts expect the yen to slip on concerns of an imminent US rate rise and also fuelled by anxiety over the slow speed of recovery in Japan. "There is potential for the dollar to go higher but any official Japanese comment (cautioning about the declining yen) will put a lid to dollar momentum," said Christy Tan, analyst with Singapore-based financial consultancy IDEA. The yen ended last week at 124.03 against the dollar in New York, sharply lower from 122.70 on Friday the previous week. Tan said the next resistance levels were 124.50 and 125.00. ANZ Investment Bank in Singapore said in a bulletin to clients that the yen could go much lower, based on feedback from foreign exchange players in the Asian market. "Whilst it is not the overwhelming consensus that the yen will weaken to 140 (medium term technical view), more than two-thirds see yen weakening to around 130 by the end of the second quarter or early third quarter (of 1999)," ANZ Bank said. Dealers say the other Asian units cannot be totally cushioned from a rapid fall of the yen. "They will also fall but it may be limited," a dealer with a European bank said. The Singapore dollar ended last week lower at 1.7198 against the greenback from 1.7118 the previous week, the Indonesian rupiah at 8,045 from 7,850, the Philippine peso at 37.865 from 37.775 and the Taiwan dollar at 32.7885 from 32.749. The Thai baht was higher at 37.00 from 37.165 and the South Korean won at 1,193.00 from 1,207.65. Alison Seng, analyst with research house Standard and Poor's MMS in Singapore, said the Singapore dollar had weakened amid rumours of intervention by authorities apparently wanting a weaker currency to fuel exports. She said the Thai central bank could also sell baht as part of efforts to close positions taken up in the forward market, adding that this could stem a rise in the Thai currency. Tan of IDEA said the peso was expected to remain stable despite the central bank's aggressive bid to cut overnight rates. "The peso is pretty much a high-yielding currency," she said. Trading of the rupiah was expected to be cautious as campaign for June polls intensifies, dealers say. The rupiah could weaken further following moves by international institutions to hold back loans, necessary to rebuild the battered economy, pending the polls.  