Intervention will not halt dollar weakness

Over the past two weeks the yen and the Korean won have strengthened to record levels, with the former reaching 10.287 against the dollar on November 19, its strongest position in more than four years. And on November 22, the won reached 10.645 against the dollar – levels last seen on November 21, 1997.

The rapid appreciation in the region's currencies over recent weeks has prompted action by regional authorities. By the end of October, foreign currency reserves of South Korea and India swel