The South Korean won recovered from its earlier losses today as the lower than expected growth of China’s consumer prices reduced probability of further tightening by Chinese government to reduce inflation.
China’s annual inflation grew 4.6 percent last month, compared to the analysts’ expectations of 5.4 percent growth. Chinese government was trying to reduce the growth of inflation by performing tightening measures, but now the government may for some time refrain from attempts to slow the economic growth. South Korean exports, 15 percent of which was shipped to China, jumped 46 percent in January from a year ago.
USD/KRW dropped from 1,124.1000 to 1,121.2500 as of 10:09 GMT after it earlier advanced to 1,126.6000.
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