The South Korean won climbed today as trade balance of South Korea posted a surplus and Moody’s Investors Service improved outlook for the nation’s economy to positive.
Moody’s changed Korea’s government bond rating to positive from stable. The rating agency cited reasons for its decision:
1. The sovereign’s very strong and improving fiscal fundamentals
2. The resilience evident in the country’s external financing position
3. The reduction in the banking sector’s level of external vulnerability
4. The outlook for relatively strong trend GDP growth over the medium term
Yesterday’s data showed that South Korean exports declined 1.4 percent in March from a year ago, while imports fell 1.2 percent, resulting in the $2.3 billion trade surplus. That was the second month with surplus.
USD/KRW was down from 1,133.2000 to 1,127.9500 as of 14:32 GMT today, falling from the intraday maximum of 1,139.5000.
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