Korea Reserves Fall for Second Month in Sign of Won Intervention

  • Yuan devaluation in August spurred slides in Asian currencies
  • Won is second-biggest loser in the region this quarter
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South Korea’s foreign-exchange reserves dropped for a second month in August, a sign the central bank likely intervened to stem a slide in the won.

The reserves fell $2.88 billion to $367.94 billion, after a July drop of $3.93 billion that marked the biggest decline in three years, central bank data showed Thursday. The won sank last month to its weakest level since October 2011 as China’s surprise devaluation of the yuan dimmed the outlook for exports, weakening emerging-market currencies across Asia, and a military standoff between North and South Korea heightened tensions on the peninsula.