Intervention Concerns Push Won Lower

The South Korean won declined today on speculations that the weakness of the Japanese yen will prompt nation’s policy makers to intervene in an attempt to push the exchange rate lower.
Japan’s aggressive monetary policy worries other Asian nation and encourages them to intervene too. Bank of Korea Governor Kim Choong Soo said that it will have a “big impact” on the South Korean economy. Policy makers surprised Forex market participants last week, unexpectedly cutting interest rates, and may do likewise again.
USD/KRW appreciated from 1,114.3950 to 1117.5950 as of 9:18 GMT today, rebounding from the daily low of 1,111.5000.

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