Won Gains as ECB Expected to Cut Interest Rates

The South Korean won advanced today on speculations that the European Central Bank would decrease its main interest rate, bolstering the eurozone economy and improving prospects for exports of emerging economies.

Optimism, caused by the European summit last week, faded and higher-yielding currencies need a news bullish story to keep their gains. The won has found such support in the form of the ECB monetary policy meeting later this week. The central bank will likely cut its interest rates, helping the European economy, which trades with many emerging markets. The Kospi Index advanced 0.9 percent.

USD/KRW dropped from 1,144.1000 to 1,138.4000 as of 11:22 GMT today.

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