The South Korean won led gains in Asian currencies against the dollar on Wednesday after Federal Reserve minutes supported expectations of further quantitative easing. The won found further support after Japanese Finance Minister Yoshihiko Noda said South Korea's leadership of the Group of 20 nations forum could come under question because of its regular currency market intervention.
The regional authorities were estimated to have bought a combined $32.7 billion via intervention between September 27 and October 12, according to traders' estimates compiled by IFR Markets. Thailand's central bank were spotted intervening as the Baht hit a fresh 13-year high despite the country's taxation plan, dealers said.
Malaysia's authorities were seen stepping in the market. The won rose 1 percent as Noda's comments and expectations for the Fed's further easing prompted investors to clear dollar long positions. The local currency ended domestic trade at 1,120.7 from Tuesday's domestic close of 1,131.5.
The Taiwan dollar rose nearly 1 percent, moving in towards a more-than-two-year high hit last week, after the Fed hinted at more quantitative easing in the world No 1 economy. The Thai baht hit a 13-year high of 29.73 per dollar, extending gains a day after the Thai government announced a 15 percent withholding tax on profits made by foreign investors on Thai bonds.
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