Korean Won Falls as Yen Decline Prompts Concerns of Intervention
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The won dropped for the first time in a week as the yen’s decline following the Group of 20 nations meeting sparked concern South Korea will step in to weaken its currency to support exports. Government bonds gained.
The yen fell against the dollar and the won after the G-20 refrained from censuring Japanese policies that have driven the currency’s decline. Bank of Korea Governor Kim Choong Soo said in an interview with the Wall Street Journal in Moscow that the monetary authority will closely monitor the impact of Japan’s policy stimulus on the South Korean economy.