(Bloomberg) -- The won plunged along with South Korean stocks and bonds as a report about a decline in North Korean leader Kim Jong Un’s health stoked concern about a possible deterioration in ties between the two nations.
The South Korean currency sank to the lowest in over two weeks as investors weighed a report that the U.S. has information that Kim may be in a critical state after cardiovascular surgery last week. Traders fretted that diplomatic relations between North and South Korea could take a turn for the worse.
“The potential death of Kim is likely to cause confusion in North Korea,” said Min Gyeong-won, an economist at Woori Bank. “In times of such chaos, the North tends to become tougher in terms of foreign relations to tighten discipline.”
The won tumbled 1.6% to 1,240.30 and reached 1,240.90, the highest since April 2. 10-year yields jumped seven basis points to 1.51%. The benchmark Kospi stock index plunged as much as 3%.
©2020 Bloomberg L.P.
