Korean Won Weakens as Asia’s Monetary Tightening Spurs Outflows
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South Korea’s won weakened, retreating from near a two-month high, as foreign investors pulled money out of the nation’s stocks amid concern monetary tightening in Asia will cool regional spending.
The currency reversed earlier gains and the Kospi stock index retreated from a record high. Bank of Korea unexpectedly increased its benchmark interest rate on Jan. 13, a day after Thailand’s central bank boosted borrowing costs. Policy makers in China, the biggest buyer of Korean exports, on Jan. 14 ordered lenders to set aside more funds as reserves for the fourth time in two months.