Won Drops on Concern About Korea’s Recovery

The South Korea fell today as the nation’s central bank left interest rates unchanged and voiced concern about the strength of the currency that may hurt economic growth.
The Bank of Korea decided to keep its key interest rate at 2.5 percent during today’s policy meeting. The central bank said in the statement:

In Korea, despite exports having sustained their buoyancy the Committee appraises the economic recovery to have shown signs of slowing, as domestic demand has slackened somewhat due largely to the impact of the Sewol ferry accident.

While Governor Lee Ju Yeol said that at the press-conference that policy makers worry about the exchange rate volatility and do not target a specific level, market participants had an impression that the Governor is not happy with the current strength of the won.
USD/KRW rose from 1,016.0500 to 1017.2599 as of 11:12 GMT today, going as high as 1,019.0400 intraday.

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