The South Korean won fell sharply against the U.S. dollar this week and reached its monthly low against the USD today despite the very weak dollars positions and the bullish trend in the Chinese yuan, which is the one of the dominating Asian currencies.
The South Korean government officials are responsible for the strong pledges to support the weakening of the national currency to narrow the current account deficit, which has reached dangerous levels recently.
The Strategy and Finance Minister, Kang Man-soo, stated that the current account balance is one of the primary objective of the monetary policymaking. He stands as a strong supporter for the wons depreciating.
The won pushing from the governments side is accompanied with an elevated demand for the U.S. dollar, as the companies need to buy the more expensive oil and other commodities.
Yesterday SoÐ³ÐµÑ Korean won closed at 982.19 per U.S. dollar, today USD/KRW reached 1000.60 and is trading at 998.05 as of 9:49 GMT.
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