Won Gains as Summers’ Withdrawal Creates Risk Appetite

The South Korean won advanced today with help of the risk-positive market sentiment. The Forex market shifted to the risk-on mode after Treasury Secretary Lawrence Summers withdrew from the race to the leadership of the Federal Reserve.

Summers was considered to be less dovish candidate for the office of Chairman compared to Janet Yellen. After the news of his withdrawal, traders became less certain that the Fed will tighten its monetary policy in the near future. Smaller chance of stimulus reduction led to risk appetite on the market.

USD/KRW fell from 1,086.6000 to 1,082.5750 as of 17:24 GMT today and its daily low was at 1,081.1300.

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