Won Trades Near 6-Month Low Amid Europe Debt Woes; Bonds Gain

South Korea’s won traded near a six-month low as concern that Europe’s debt crisis will escalate was countered by the Federal Reserve signaling its record bond-buying program will continue. Government bonds rose.

The Standard & Poor’s 500 Index snapped a three-day decline as Fed Chairman Ben S. Bernanke said the U.S. labor market must improve further for the central bank to consider reducing its record monetary easing. The won declined yesterday after South Korea said it will consider curbing capital flows, and Cypriot lawmakers rejected an unprecedented levy on bank deposits. The European Central Bank will probably delay a decision on continued support for Cyprus’s banks, two people familiar with the deliberations said yesterday.