Forex News

After several sessions of strong risk aversion affecting emerging market currencies, optimism returned among traders on expectations that an European Union proposal to rescue Greece will boost appeal for riskier assets, allowing the won to outperform other Asian currencies.

The South Korean currency, one of the best performers in 2009 among Asian emerging markets, had a severe weekly decline as risk aversion remained predominant after China’s statements regarding new regulations on its economy.

The South Korean currency has been favored since the beginning of the year by both domestic and international signs of improved economic conditions.

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.

The Korean won advanced at a fastest pace among the most-traded Asian currencies today as the risk-aversion that prevailed earlier this week ended unexpectedly and the outlooks for the Asian emerging economies improved.

The South Korean won declined today against the U.S. dollar after rising for the whole week after the country’s government said that the current investors’ outlook for the economy are too optimistic.

The South Korean won, which is the outsider among the Asian currencies in the current year, rose to near the 2-month high against the U.S. dollar today as the latter declined on the lower risk-aversion mood of the currency market.

The South Korean won rose for the third day against the U.S. dollar today as some Asian stock markets showed the growth and the high-yielding currencies were favored by the traders.

The South Korean won declined to almost two-month low level against the U.S. dollar today as the global economic crisis worsened, prompting investors to sell the emerging markets’ assets.

The South Korean won was the worst-performing currency among the Asian ones this month as the investors moved out of the country’s assets and the exports to the developed economies fell sharply.