Korean Won Drops to Two-Month Low After China Unveils Yuan Index
- New yuan gauge set to weaken Asian currencies: Kookmin Bank
- Overseas funds sell South Korean stocks for ninth day
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South Korea’s won fell to the lowest in more than two months on speculation China will allow the yuan to weaken after policy makers unveiled a measure that valued it against a broad range of currencies.
The yuan fell to a four-year low in Shanghai after China Foreign Exchange Trade System on Friday published an index composed of 13 currencies. The CFETS, which is run by the central bank to facilitate interbank trading, said the gauge will “help bring about a shift in how the public and the market observe” exchange-rate moves. Global investors sold more South Korean stocks than they bought for a ninth day as a plunge in oil and the prospect of the Federal Reserve raising interest rates this week damped demand for riskier assets.