South Korea’s Won Gains vs. Dollar, Fall vs. Euro

The South Korean won rose against the US dollar as the manufacturers confidence improved. The currency slipped versus the euro amid the geopolitical uncertainty.

The Bank of Korea reported that the index of the expectations for January went up from 91 to 92 in December. The index of non-manufacturing expectations slipped from 92 to 87. The analysts say that the South Korean currency would stop appreciation as the importers would buy dollars at current high prices.

The tension between South and North Korea provides another reason for the won’s depreciation. The defense ministry officially of South Korea openly proclaimed North Korea as its enemy.

USD/KRW went down from 1,144.60 to 1,144.35 as of 04:12 GMT today. EUR/KRW advanced from 1,499.4501 to 1,503.0500.

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