The South Korean won closed at 1,416.0 per dollar in Seoul, down 2.4 won from the previous session, as supportive flows such as exporter selling and expected inflows tied to inclusion in the World Government Bond Index (WGBI) faced off against fresh dollar demand. Traders are focused on the yen after it weakened again in New York trading to 159.29 per dollar, about 1% lower than the previous day, reviving concern that renewed yen weakness could weigh on the won and other Asian currencies. The dollar-yen rate had fallen from the 164 range to the 155 range after joint U.S.-Japan foreign exchange intervention late last month, but it has retraced about half that move in less than 10 days. Analysts say the main drivers of yen weakness, including Japan's fiscal concerns, the U.S.-Japan interest rate gap and geopolitical risk in the Middle East, remain unresolved. On the won's supportive side, exporter selling and WGBI-related inflows could cluster later this month, while some observers said dollar demand linked to SK hynix's American depositary receipts (ADRs) has largely been absorbed. Offsetting that, quarterly dividends due to foreign investors this month total about $1.6 billion, and Korean investors were net buyers of $4.64 billion in U.S. stocks last month. Bank of Korea Deputy Governor Ryoo Sang-dai said the exchange rate is not a key factor in setting the base rate, called around 1,400 won "a very high level," and said, "I don't think the exchange rate will fall quickly," while adding, "If asked to name a direction, I'd point downward."