* Won falls on stock outflows; exporters, bond inflows limit
* Philippine March remittance growth slowest in nearly 4
* Stocks, IPO inflows help peso pare losses - traders
(Adds text, updates prices)
By Jongwoo Cheon
SINGAPORE, May 15 (Reuters) - Most emerging Asian currencies
fell on Wednesday as the dollar rose, hitting a 4-1/2 year high
against the yen on sustained expectations the Federal Reserve
will reduce policy stimulus and on higher U.S. bond yields.
The South Korean won, weakened on stock outflows,
had the biggest slide among regional units. The Malaysian
ringgit eased as investors increased dollar positions.
The Philippine peso fell as remittances from
Filipinos overseas during March increased at the slowest annual
pace in nearly four years.
Such weakness came as the dollar rose to 102.63 to the yen
, its highest since October 2008.
"We expect Asian currencies to remain beholden to the strong
dollar impetus gripping markets in the current episode," OCBC
Bank said in a note.
Evidence of the U.S. Economic recovery has bolstered
speculation that the Fed will start winding down its
asset-buying programme as soon as this year, a move that would
likely push up U.S. Treasury yields.
On Tuesday, the 10-year note yield rose to 1.982
percent and the 30-year yield was also up to 3.200
percent. Both were at their highest since March 15.
The gains reduced yield differentials between Treasuries and
bonds in emerging Asian currencies.
The won depreciated on dollar demand linked to foreign
investors' stock selling and as a weaker yen is seen hurting
South Korea's export competitiveness.
Still, demand from exporters for settlements and sustained
bond inflows helped the South Korean currency, traders said.
"It looks meaningful that strong won demand including
bond-linked bids prevented it from weakening past 1,115 (per
dollar)," said a foreign bank trader in Seoul.
"But the won is unlikely to appreciate given the current
conditions. It will stay in a tight range," the trader added.
The ringgit fell as investors added dollar holdings on the
higher U.S. Treasury bond yields and speculation about the Fed
The Malaysian currency recovered some of its initial losses
on demand from exporters, traders said.
But it is seen staying weak as some investors appeared to
hold long positions they need to clear, a senior Malaysian bank
trader in Kuala Lumpur said.
"The whole market is buying dollar against everything due to
continuation of market perception that the Fed tapers off QE
based on stronger economic recovery," the trader said, referring
to quantitative easing.
"Now people think the U.S. will perform better than Europe
and Japan. So, U.S. rates will be the first to move up," said
the trader, adding the ringgit may weaken to 3.0200-3.0300 per
Investors were awaiting the first quarter growth data due at
1000 GMT. Malaysia's annual economic growth likely eased to 5.2
percent in the January-March period, the slowest pace of
expansion in a year, a Reuters poll showed.
The peso fell as much as 0.3 percent to 41.21 per dollar
after data showing March remittances grew 3.0 percent to $1.75
billion from a year earlier.
Remittance inflows have been the main supporter for the
But the Philippine currency's slide was limited by inflows
linked to stocks and initial public offerings, traders said.
A Manila-based trader said the peso's losses might have been
pared by inflows for a $204 million IPO for Asia United Bank
The peso may get support on expectations of foreign
participation in coming IPOs including a targeted $854 million
one by a joint venture between casino operator Genting Hong Kong
Ltd and Philippine conglomerate Alliance Global Group, traders
Still, the peso is unlikely to rebound as investors remain
wary of the Fed's potential policy change, traders said.
"We've seen good sellers (of dollar/peso), but it is still
supported towards 41.10 in the short term," said another senior
Philippine bank trader in Manila.
CURRENCIES VS U.S. DOLLAR
Change on the day at 0700 GMT
Currency Latest bid Previous day Pct Move
Japan yen 102.56 102.30 -0.25
Sing dlr 1.2443 1.2432 -0.09
Taiwan dlr 29.876 29.906 +0.10
Korean won 1114.47 1106.60 -0.71
Baht 29.73 29.65 -0.27
Peso 41.20 41.08 -0.28
Rupiah 9745.00 9736.00 -0.09
Rupee 54.79 54.81 +0.04
Ringgit 3.0005 2.9895 -0.37
Yuan 6.1459 6.1428 -0.05
Change so far in 2013
Currency Latest bid End prev year Pct Move
Japan yen 102.56 86.79 -15.38
Sing dlr 1.2443 1.2219 -1.80
Taiwan dlr 29.876 29.136 -2.48
Korean won 1114.47 1070.60 -3.94
Baht 29.73 30.61 +2.96
Peso 41.20 41.05 -0.35
Rupiah 9745.00 9630.00 -1.18
Rupee 54.79 54.99 +0.37
Ringgit 3.0005 3.0580 +1.92
Yuan 6.1459 6.2303 +1.37
(Additional reporting by Yena Park in SEOUL; Editing by Richard