South Korean Won Hits 4-Month High Against U.S. Dollar
The South Korean currency has been favored since the beginning of the year by both domestic and international signs of improved economic conditions.
The South Korean stocks rallied this Monday pushing the national currency up as extremely favorable economic reports were released in both local and international markets. The national central bank injected less than forecast foreign currency in the domestic market, which helped rising speculations that the South Korean banks have eased their foreign currencies liquidity issues. One of South Korea’s leading trading partners, China, has been posting consecutive reports indicating that economic conditions are improving, which have a direct effect in the price of the won.
Analysts in Asia are expecting the South Korean currency to continue its rally, affirming that the mood among investors is highly optimistic, and if the next months follow the actual trend of positive news, the won is very likely to rise sharply, mainly against the U.S. dollar and the yen. Signs of economic recovery in the South Korean market are also being regarded by economists are greater than estimated, indicating that the national economy may revive its days of growth quickly.
The USD/KRW remained stable from Friday’s price, but has fallen significantly since the beginning of April, from 1379.31 to 1277.4 presently.
If you have any questions, comments or opinions regarding the South Korean Won, feel free to post them using the commentary form below.
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Earlier News About the South Korean Won:
- Korean Won Rises On Optimistic Declarations (2009-04-22)
- 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)
9 Comments
We are looking to move money from Korea to the U.S. when we move back in September. Do you think we should wait till then with the current market movement or should we act now as they have had some issues arise in their country and North Korea. Thanks!
I believe that in September the South Korean won will trade not much higher than it’s trading now. So, I wouldn’t suggest moving the money now if you’ll need it only in September. On the other hand, if some real military action break outs in that region, the won will fall. But that’s very improbable.
Sorry I posted my questions at the wrong page.
1. What’s expectation on USDKRW at the end of June?
2. What about in a long run, say in 3 month and till end 2009?
Can you suggest a option to offset loss on exchange rate? In our business, we purchase on a daily basis but pay suppliers at the end of the month, usually in USD & EUR.
I’d suggest you not to play with the exchange rates and exchange currency whenever you need it. As to your questions:
1. Almost the same as now.
2. USD/KRW will decline by the end of the year.
In 2008, USD/KRW appreciated 34%. Do you think a total gain of +20% to around 1100 level likely? Thank you.
Sorry, I always type too fast. I meant KRW regain its loss to 1100 level. Thanks.
USD/KRW at 1100 is quite possible by the end of 2009, in my opinion.
The won seems to be falling against the Euro at the moment. I am needing to send money home in late September. Do you reckon it will drop further?
I don’t think that won will fall significantly against the euro till late September.