The South Korean won weakened today on concerns that the nation’s central bank will intervene to rein the currency’s rally that may hurt the South Korean economy.
Bank of Korea Governor Kim Choong Soo signaled that the central bank may act in response to increasing volatility on financial markets. The won was rising after absence of quantitative easing tampering from the US Federal Reserve resulted in risk appetite and higher demand for currencies of emerging economies. Of course, US budget talks hurt the market sentiment now and this eats away the won’s strength too.
USD/KRW went up from 1,074.7999 to 1076.9249 as of 14:20 GMT today and its daily high was at 1,079.7050.
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