Asian Currencies Decline in Week as Yen Tumble Threatens Exports

Asian currencies fell for a second week, led by South Korea’s won and the Taiwan dollar, on concern the yen’s slide to a 2 1/2-year low will hurt exports from the region’s emerging-market economies.

The Bloomberg-JPMorgan Asia Dollar Index touched a two-month low today as a Bank of Korea board member warned of a global currency war. The yen weakened versus the dollar in each of the last four months amid speculation Japanese Prime Minister Shinzo Abe will favor more aggressive stimulus measures. The Federal Reserve said Jan. 30 it will maintain its $85 billion of monthly debt purchases, a policy that spurs the flow of funds to emerging markets. India’s rupee was headed for a weekly advance after the central bank cut interest rates for the first time in nine months.