The South Korean won, which is the outsider among the Asian currencies in the current year, rose to near the 2-month high against the U.S. dollar today as the latter declined on the lower risk-aversion mood of the currency market.
The inflow of the investors foreign currency into the Korean stock market allowed the domestic banking institutions and exporters to fulfill their demand for the U.S. dollar, thus allowing the won to appreciate against the greenback. It went up by 14 percent against the dollar this month. Earlier, the Korean won was the worst-performing currency in the region.
The declining demand for the U.S. long-term securities from the global central banks press on the U.S. currency, allowing more breath-space for the emerging currencies. Although the South Korean economy has been recently recognized as the developed one, it still behaves in the unison with other regional risk-ridden emerging economies.
USD/KRW fell from 1355.1 to 1330.5 as of 6:00 GMT today; it reached its 11-year low at 1597.5 on March 6.
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