The South Korean won rose today after Korea’s central bank kept its main interest rate unchanged as the negative impact of the eurozone crisis was balanced by rising fuel prices that were adding an upside risk for inflation.
The Bank of Korea kept its Base Rate (key interest rate) at 3.25 percent. The bank said in its statement that the nation’s economic growth avoided slowdown and that:
The Committee anticipates that the domestic economic growth rate will gradually return to its longterm trend level going forward, although viewing downside risks as likely to remain high for some time due mostly to the impact of external risk factors.
Among the negative factors the BoK mentioned the European crisis as well as weakening of emerging markets’ economies, but the central bank also noted positive developments in the United States.
USD/KRW fell from 1,123.4000 to 1,118.2999 as of 10:04 GMT today.
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