Yen/Won - currency clashes - FT.com It ain't what you say or do, it's the way that you deliver it. Politicians know that and so do the markets. Japan and South Korea have been fighting the forces of foreign exchange since well before Brazil joined what it dubbed "currency wars" two years ago. But the Asians are not enjoying uniform success in their recent skirmishes. Shinzo Abe's headline-grabbing suggestions for "unlimited" action to end Japan's deflation have weakened the yen in a trade now named after the probable next prime minister. Since Mr Abe's comments last month, the yen has slipped 3 per cent to a six-month low versus the dollar. The won meanwhile has gained about 10 per cent in six months. It has not featured so prominently in Korea's presidential elections, but its rally has been called "excessive" - code for "watch it" - and has limited the size of forward positions to curb its strength. Markets, however, still expect further gains. Seoul's problem is that it is all relative. South Korea's real effective exchange rate, as measured against a basket of currencies adjusted for inflation, is far weaker than its painful levels in 2007, according to ANZ research. Its growing current account surplus versus Japan's shrinking one will also buoy the won, even before factoring in the election rhetoric from both sides in favour of curbing big companies" power - won-sensitive exporters in other words - in favour of what is called economic democratisation. Mr Abe's comments have helped yen short positions against the dollar rise to five-year highs. That will make it hard for action in office to match the impact of his campaign rhetoric. But he might not have to. If the won takes some of the strain and Japan's embattled exporters become a little more competitive, Japan will gain whether or not the yen moves much against the dollar. Success in battle is, after all, the outcome of both sides" actions.