Monday, September 6, 2010

Stable Economic Growth Makes South Korea’s Won Stronger

The South Korean has won appreciated today as the concerns for the economic growth eased, boosting the outlook for South Korea’s economy and increasing chances that the central bank will raise the interest rates.

The nation’s gross domestic product expanded 1.4% in the second quarter of 2010, almost matching the forecast value of 1.5%. The stable growth allowed the International Monetary Fund to raise the growth forecast to 6.1% for the current year. The favorable fundamentals also spurred the investors to bet that the Bank of Korea would increase the rates on the next meeting of its policy makers.

USD/KRW dropped today to 1,174.30 from the opening price of 1,180.10 as of 12:06 GMT.

If you want to comment on the South Korean won’s recent action or have any questions regarding this currency, please, feel free to reply below.

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