Won Rallies on Wider Current-Account Surplus

The won advanced today as South Korean current-account surplus widened last month, supporting the positive outlook for the nation’s economic growth. There are speculations that the rally was also caused by exporters who converted their earnings into the domestic currency.
The Bank of Korea reported that the current-account surplus increased from $4.5 billion in February to $7.35 billion in March. Economists estimated ahead of the official data South Korean exports grew 5.5 percent in April from a year ago, accelerating from March growth of 5.1 percent. Exporters were selling dollars to convert their profits ahead of the month’s ends.
USD/KRW fell from 1,035.2999 to 1,030.0950 as of 12:13 GMT today.

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