The Korean won advanced at a fastest pace among the most-traded Asian currencies today as the risk-aversion that prevailed earlier this week ended unexpectedly and the outlooks for the Asian emerging economies improved.
The South Korean currency gained also because the government managed to sell successfully $3 billion worth of the global bonds, which would allow it to hold down the demand for the foreign currency if it arises in the futures. The run-away to stocks from the dollar and the yen positively influences the won today. The fundamental indicators also help the emerging currencies as they suggest gradual but stable recovery from the recession.
Some Forex traders now try to ride the wons appreciation wave just because it showed a very sharp turn from being the worst-performing regional currency to being the leader of the growth. Currency analysts has almost nothing to say about wons steep gains — the currencys behavior greatly depends on the governments interventions.
USD/KRW declined from 1349.6 to 1317.6 as of 6:00 GMT today, it was still trading above the 3-month low set on April 6 at 1.306.0.
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