Won Drops vs. Dollar, Domestic Fundamentals Remain Supportive

The South Korean won dipped today against the dollar as the US currency was propelled higher by positive economic data from the United States. Reports from South Korea itself were not bad either and may yet provide support for the won.

The greenback rallied after the manufacturing index from Institute for Supply Management climbed to the highest level since March 2011. As for data from South Korea, the trade balance surplus rose to the record level last month, and analysts say this means that exporters will be selling the dollar-won pair during rallies. Yet prospects for monetary tightening from the Federal Reserve did not allow the won to gain on the dollar despite supportive domestic fundamentals.

USD/KRW advanced 0.37 percent to 1,076.68 as of 9:20 GMT today.

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