The South Korean won fell today as worries about the budget deficit in the United States of America made investors less willing to buy higher-yielding currencies.
The time is nearing when automatic spending cuts and higher taxes will kick in, threatening the US economy. Something is required to be done with that danger, but market participants are worried that the President and Congress have hard time finding an agreement. It is not the best trading environment for riskier assets and the won suffered. Europe’s problems are not helping to alleviate the negative sentiment either.
USD/KRW rose from 1,089.1749 to 1,092.8750 as of 15:26 GMT today.
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