Won Gains on Hopes for QE3 from Fed, Gains Limited

The South Korean won rose today as speculations that the US Federal Reserve would stimulate the slowing economy continued to bolster higher-yielding assets of emerging markets.
The won profited, as most other currencies associated with higher risk, from increasing probability of the third round of quantitative easing from the Fed. Gains were limited, though, as uncertainty about the outcome of the elections in Greece this weekend reduced investors’ willingness to risk. Analysts said that the currency were weaker because speculators were covering their short positions and Korean importers were buying dollars.
USD/KRW fell from 1,164.6000 to 1,162.9000 as of 10:43 GMT today. The intraday low was at 1,159.6000.

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