Korea’s Won Slips on US Economy

  June 07th, 2011 at 13:05

South Korean wonThe South Korean won fell today on the speculation that the slowdown of the US economy will deter investors from higher-yielding assets.

Last week the US non-farm payrolls, which grew in May with the slowest pace in eight months, and the unexpected increase of the unemployment claims erased attractiveness of riskier currencies and the influence of the unfavorable data is still felt today. Finance Minister Bahk Jae Wan claimed that the won is influenced by economic fundamentals and currency traders and wasn’t artificially weakened by the government. The currency appreciated 4.1 percent this year.

USD/KRW rose to 1,081.40 from 1,080.10 as of 13:04 GMT today.

If you have any questions, comments or opinions regarding the South Korean Won, feel free to post them using the commentary form below.

Tags

, , , ,

Categories

South Korean Won

Earlier News About the South Korean Won:

6 Comments

  1. June 07th, 2011 at 13:27
    Natalie

    I am a Canadian working in South Korea. Will inflation hurt the increase value of the won? When is a good time for me to exchange my South Korean Won into Canadian Dollars? Thanks

    Reply
    • June 07th, 2011 at 13:55
      Andrei Moraru

      Inflation in Korea? It will probably help won. But I’d recommend you to hedge your currency risks. Unfortunately, I couldn’t find any brokers that offer CAD/KRW currency pair, but USD/KRW and USD/CAD can be used for the same purpose.

      Reply
  2. June 07th, 2011 at 14:31
    Natalie

    Thanks!

    Personally, I am ready for the risk. I have been in the mindset that I am making less than I actually am, but now things are getting exciting for SKorea!

    There is a meeting about inflation rates on June 10th, 2011. I was worried that it would hurt the strong won.

    Do you have any advice about the Canadian dollar? I’ve read that its going to go below the US dollar near the end of June/ early August. Do you think that will happen considering the uncertainty of the greenback?

    Regarding the won…what do you think? I am here till November. When do you think would be a good time to exchange my money? I am not worried about it going down significantly because that is the amount I have been planning on.

    Thanks very much!

    Reply
    • June 07th, 2011 at 15:05
      Andrei Moraru

      I expect USD/CAD to go up in few months perspective. The won will probably also continue strengthen until the end of the year. But that’s, of course, can be changed easily by some unforeseeable circumstances.

      Reply
  3. June 26th, 2011 at 19:37
    Sean

    Does anyone know a good forex broker to trade USD/KRW? A few choices would be great, prefer higher leverage.
    Thanks

    Reply
  4. July 14th, 2011 at 6:53
    ทัวร์เกาหลี

    I was worried that it would hurt the strong won.

    Reply

Leave a Comment

Name Required

Email Required

Website

Comment

Our Sponsor

Monetize Your Currency Insights

Info

Archives

SUBSCRIBE

Searching for a proper Forex broker? See the list of recommended Forex brokers.