The South Korean won weakened today as signs of faltering global economic growth made investors prepare for a new crisis, making riskier assets less attractive.
Financial Supervisory Service Governor Kwon Hyouk Se recommended to chief executives of insurance companies to be cautious in paying dividends and to boost capital as a preparation for a potential crisis. Morgan Stanley cut its 2011 economic growth forecast for South Korea from 4.5 percent to 3.8 percent yesterday, explaining the decision by the risk of a âcorrectionâ in consumption. The Kospi stock index slid as much as 6.2 percent, posting the biggest drop since November 2008.
USD/KRW advanced from 1,083.40 to 1,087.30 as of 14:42 GMT, while today’s daily low was 1,077.05.
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