Korea’s Won Still Feels Pressure from Europe

The South Korean won remained lower today as concerns about the sovereign debt crisis in Europe were negative for the currency.

Spain auctioned its new 10-year notes at the average yield of 6.975 percent yesterday, causing the Kospi index of shares drop 2 percent today. Yield on Italy’s benchmark 10-year debt jumped above 7 percent this week.

The economic health of South Korea itself looks good, but Finance Minister Bahk Jae Wan said that the economic growth in the first half of the next year may be subdued before recovering in the second half.

USD/KRW was up from 1,139.9000 to 1,139.4500 today as of 17:03 GMT, while intraday it touched the minimum of 1,131.7500.

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