Won Drops as China Reduces Appeal of Risky Assets

The South Korean won slid today as global equities declined on concerns that China’s economic slowdown sapped demand from riskier assets of emerging economies.
Nowadays, one of the major themes in news is the economic slowdown of China. Indeed, Premier Wen Jiabao stated that the growth target is 7.5 percent for this year, while it has been 8 percent for the last several years. Additionally, North Korea threatened its South neighbor not to raise the nuclear issue at a security summit to be held in Seoul next week. Analysts said, though, that the drop of the won will limited and the currency will trade in a range for some time.
USD/KRW rose from 1,125.0000 to 1,129.6000 as of 10:36 GMT today.

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