Won Weakens on Yen Drop, Foreigners Selling Shares
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The won dropped after the yen’s decline sparked concern South Korea will act to weaken its currency to protect exports. Government bonds were unchanged.
The yen fell to its lowest level versus the dollar since May 2010 amid speculation Japanese Prime Minister Shinzo Abe is preparing to nominate Asian Development Bank President Haruhiko Kuroda as Bank of Japan governor. Kuroda said Feb. 11 the central bank has “really substantial room” for monetary easing, signaling he may embrace stronger stimulus that would further weaken the currency.