Asian currencies pared losses

Asian currencies pared losses as signs of the Week Ireland will accept a rescue plan and regional economies are to sustain growth fueled investors' appetite for higher yielding assets.

Irish central bank governor said Patrick Honohan November 18 is expected to touch a loan from the European Union and the International Monetary Fund worth "tens of billions" of euros, reduced demand for the safety of the dollar. Asia exchange rates fell this week to the governments concerned to impose controls to curb capital flows. Ministry of Finance of South Korea said on 18 November, supported the legislation of a tax on bonds.

"Much will depend on whether the Dublin agreement, the IMF and the EU will end the weekend," said Radhika Rao, regional economist at Forecast Pte in Singapore. "Investors do not like this kind of uncertainty", such as withholding tax in South Korea, said Rao.

South Korean won appreciated 0.1 percent to 1,133.65 per dollar in Seoul, reducing its fall this week to 0.5 percent. Malaysia's ringgit rose 0.2 percent to 3.1174, comparing the decline in the past five days to 0.2 percent. Thai baht was little changed at 29.94 and fell 0.6 percent in the week.

South Korean government will support the restoration of law of a 14 percent tax on interest income from treasury bonds and central bank and a 20 percent capital gains tax on sale, the Ministry of Finance said that on 18 November.

"Concerns about government measures to control capital has not disappeared completely," said Lee Young Chul, a coin dealer at Korea Exchange Bank in Seoul. "We have seen the authorities to limit the gains around 1,130 per dollar."

Taiwan Economy

Taiwan dollar strengthened after the economy expanded more than expected in the third quarter. The currency rose 0.2 percent to NT $ 30,673, taking profit of the week to 0.3 percent.

Gross domestic product rose 9.8 percent in the third quarter last year, the government reported after the close of business on 18 November. The median estimate of economists was for growth of 8.3 percent.

"Taiwan's economy is in very good shape, and will continue to attract hot money," said Hao Yun-Juan, a currency trader in Taipei in Kingstown Bank. "This puts more pressure on the central bank to stem currency gains."

The ringgit advanced for a second day after the central bank said it is considering measures to curb capital inflows. Malaysia, whose bonds have attracted record funds from abroad this year, will maintain "a strict surveillance" to ensure markets are not overwhelmed, central bank governor Zetia Akhtar Aziz, said in Oslo on 18 November.

Force Ringgit

"It's a signal that can withstand the force even ringgit, and that's what the market is looking for," said Nik M. Khairul, a merchant cash advance in Asia Finance Bhd in Kuala Lumpur. "Most central banks continue to protect against hot money."

Overseas holdings of debt in Malaysia were 68 million ringgit ($ 21,800,000,000) as of September 30, about 66 percent more than at the end of last year, according to data from Bank Negara Malaysia on Oct. 29 .

"This is not on the table to impose any restrictions on capital flows," he told reporters Zetia. "Of course, we will work with other countries if necessary and there is no risk to stability in our region."

Elsewhere, the Singapore dollar fell 0.2 percent this week to S $ 1.2952 against the U.S. currency and the Philippine peso fell 0.2 percent to 43.81. Indonesia rupiah lost 0.1 percent for 8933 and the Indian rupee fell 0.9 percent to 45.19.