Asian currencies declined for a second week on speculation regional central banks will allow their exchange-rates to depreciate to keep exports competitive with Japan, as the yen fell to a four-year low.
South Korea’s won and the Taiwan dollar are more sensitive to yen weakness because companies such as Samsung Electronics Co. and Sony Corp. compete for global market share. Those exchange rates, along with Malaysia’s ringgit, led this week’s drop. Asian currencies also fell amid rising demand for the dollar, after U.S. retail sales beat economists’ forecasts.
“Policy makers in countries competing with Japan remain sensitive about the yen’s move and there are some intervention concerns in these markets,” said Koji Fukaya, chief executive officer and foreign-exchange strategist at FPG Securities Co. in Tokyo. “There’s also general dollar strength on the back of optimism over the U.S. economic recovery.”
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