The South Korean won appreciated today as the concerns for the economic growth eased, boosting the outlook for South Korea’s economy and increasing chances that the central bank will raise the interest rates.
The nation’s gross domestic product expanded 1.4 percent in the second quarter of 2010, almost matching the forecast value of 1.5 percent. The stable growth allowed the International Monetary Fund to raise the growth forecast to 6.1 percent for the current year. The favorable fundamentals also spurred the investors to bet that the Bank of Korea would increase the rates on the next meeting of its policy makers.
USD/KRW dropped today to 1,174.30 from the opening price of 1,180.10 as of 12:06 GMT.
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