Won Leads Weekly Drop in Asia Currencies on Fed Bets, China Data

Asian currencies fell this week, led by South Korea’s won, as Chinese economic data missed estimates and a stronger U.S. recovery added to speculation the Federal Reserve will cut its stimulus further.

The Bloomberg-JPMorgan Asia Dollar Index dropped for a second week as reports showed U.S. December sales of existing homes capped the best year since 2006 and jobless claims held near a six-week low. Signs of a sustained economic pickup fueled bets the Fed will continue to reduce bond-buying that has spurred fund flows to emerging markets. Manufacturing in China, Asia’s biggest economy, may have contracted this month, a preliminary reading showed on Jan. 23.