FX Week

Won to weaken against yen in the short-term

"After the G7 meeting two weeks ago, the yen strengthened from 115 to around 110 [to the US dollar], and it seems Koreans are very reluctant to follow suit," said Tai Hui, global markets economist at Standard Chartered in Hong Kong. "Rather than shadowing the yen at the yen/won cross of 10, I think they want to weaken the won slightly."

Local media last week reported an unnamed senior official at Korea’s Ministry of Finance and Economy (MoFE) as saying the government was rethinking whether it