Jan. 18 (Bloomberg) -- Asian currencies headed for a weekly decline, with South Korea's won set for its worst week in two months, as overseas investors sold local shares on expectations a U.S. slowdown will cut demand for the region's exports.
The won and South Korea's benchmark stock index reached their lowest since August as central bank Governor Lee Seong Tae said the nation's economy faces intensifying risks from the possibility of a U.S. recession and soaring fuel costs.
``The won is vulnerable to declines in global equities,'' said Yuji Kameoka, a senior economist and currency analyst at Daiwa Institute of Research in Tokyo. ``Concerns cooling U.S. growth will drag global stock markets and the global economy lower encourages investors to sell emerging-market assets.''
The won has fallen 1.1 percent this week to 948.25 against the dollar as of 12:50 p.m. local time, according to Seoul Money Brokerage Services Ltd. It may trade between 945 and 960 in a month, Kameoka said.
The won is the second-worst performer out of the 10 most- active Asian currencies outside of Japan this week. Thailand's baht is the worst, losing 3.5 percent this week offshore.
Malaysia's ringgit headed for its first weekly decline in a month also on concern about a U.S. recession.
The local currency weakened for a third day as global stocks slumped after U.S. reports yesterday showed slowing manufacturing and housing activity and Merrill Lynch & Co. announced larger-than-expected losses. The U.S. is the biggest market for Malaysian exports.
`Safe-Haven Assets'
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