Korean Won Rises On Optimistic Declarations
After 3 days of sequential losses, the South Korean won had its first session of gains as the American Treasury Secretary Timothy Geithner affirmed that most banks in the U.S. have «enough capital», causing a rally in assets from emerging countries.
This week didn’t necessarily start as a satisfactory one for KRW traders, with China failing to recover its GDP growth and after the Bank of America having to inject more money on bad loans, the won had 3 days of consecutive losses in the international currency market. After Geithner’s declaration that the majority of banks in the United States are in a financially healthy condition, the won improved, and according to the South Korean government, the domestic economy is showing positive and negative numbers, making the national stock market to be in a rather stable position.
Asian analysts agreed that the bulling movement in the American stock market is helping currencies in emergent-markets to gain against major pairs, but the instability during the past days caused substantial losses for the South Korean Won, reversing a winning trend that has started in March. Being an exporting country, the Korean economy is expected to contract 4% this year, as a consequence of a slumping global demand for its products; the unemployment rate has reached the same level it had during the late 90’s Asian market crisis.
The USD/KRW traded as 1,347.8 from 1,342.4 in the intraday. Since March, the USD/KRW slid significantly, falling from 1.550,0 to the current level.
If you want to comment on the Korean Won recent action or have any questions regarding this currency, please, feel free to reply below.
Earlier News About the South Korean Won:
- Won Once Again Leads in Gain in Asia (2009-04-09)
- KRW Falls as Government Cools Optimism (2009-04-03)
- Korean Won Grows on Dollar's Decline (2009-03-26)
- Korean Won Rises as Asian Stocks Gain (2009-03-10)
- USD/KRW Approaches 2-Month High (2009-02-16)
April 23rd, 2009 at 4:37 am
Hi,
What is the speculation for KRW against USD? Will it still go up or are there any chances of it again falling down?
[Reply]
Andrei Moraru Reply:
April 23rd, 2009 at 8:00 am
I’d say that there are chances for it to go down in a short-term, but in a long-term period it’s going to continue appreciate against the U.S. dollar as the recession will slowly fade away.
[Reply]