The South Korean won has been the fifth best performing currency of the 36 most actively traded against the dollar in the month of August and the best Asian currency other than the yen even after dropping Monday and Tuesday in the local time zone. What has been working for the won is that it largely outperformed other Asian currencies in their race to the bottom against the yen. But that is only going to work for the won for so long and what will matter is direct trading against the dollar. In that trade, expect the won to weaken. The won has been hurt by expectations for U.S. dollar strength on the back of an end or tapering to the Fed’s asset purchase program, QE. Concerns about Chinese growth are also weighing on the Korean unit against the dollar. The won has lost 2.5 percent against the dollar in the last three months of trading 2.4 percent in the last six months and 4.5 percent year to date. Indeed, it is the second worst performing currency against the dollar in 2013, only just behind the New Zealand dollar.