1. That will lead them to seek weaker currencies to boost their exports, traders said. 2. However, this does not prevent markets from continuing to sell weaker ERM currencies. 3. Analysts said the recovery in fuel demand may be short lived because a weaker Korean currency, the won, makes dollar-denominated imports of oil more expensive. 4. And because a weaker currency will make imports more expensive, many Korean companies may just pass along those higher costs to customers abroad. 5. And local companies pay salaries and costs, often linked to the inflation rate, in the weaker local currency, while they earn revenue in dollars. 6. And these companies pay costs and salaries in weaker local currency and earn revenue in stronger dollars. 7. And the Commerce Department predicted this week that the growth would continue as the economic revival in Europe helps offset the decline in purchasing power from weaker currencies. 8. And while weaker currencies may now force governments to tighten their belts, countries like Thailand are also hoping they will fuel exports. 9. As imports become more expensive with a weaker local currency, duties on imports would also rise. 10. Asian currencies will follow the lead of the won and the yen because countries need weaker currencies for their exports to remain competitive. |