South Korean Won Climbs as Central Bank Raises Interest Rates

The South Korean won rose today, as well as other Asian currencies, after South Korea’s central bank increased its interest rates for the second time this year.

The Bank of Korea raised its seven-day repurchase rate by 0.25 percentage point to 2.5 percent. The concerns remain that the government would take steps to trim the inflows of the foreign funds in the nation in order to prevent the consumer prices from rising. These concerns may limit the gains of the won.

USD/KRW dropped from 1,134.65 to 1,129.20 as of 15:39 GMT today.

If you have any questions, comments or opinions regarding the South Korean Won,
feel free to post them using the commentary form below.