(Bloomberg) -- South Korea's won dropped on speculation investors sold the currency to fund purchases of the yen, which rose to a two-week high against the dollar.
Fund managers have been borrowing yen at Japan's lower interest rates to invest in higher-yielding assets abroad, in so-called carry trades. Speculation the Bank of Japan will raise interest rates may have prompted traders to reverse such investments, requiring them to sell the won.
Read more at Bloomberg Currencies News
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