South Korean Won Retreats Even amid Favorable Fundamentals

The South Korean won retreated today after touching the highest level since March. The earlier rally occurred after South Korea’s trade balance posted surplus and manufacturing expanded last month.
South Korea’s exports grew 0.4 percent in April from a year ago, exceeding imports for the 15th consecutive month. The country’s manufacturing Purchasing Managers’ Index rose to 52.6 last month from 52.0 in March. The US macroeconomic data was not good, hurting risky currencies, but it may prove beneficial in a long run as it means extension of quantitative easing from the Federal Reserve.
USD/KRW edged higher from 1,100.50 to 1102.11 as of 10:01 GMT today after touching 1,098.15 — the strongest price since March 13.

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