The South Korean Won has strengthened to its highest level in more than two months against the US Dollar after the USA agreed to work with Japan, South Korea and most importantly China to try and bring North Korea to the negotiating table.
US secretary of State, John Kerry however closed the possibility for a meeting with North Korean dictator Kim Jong Un saying; “We cannot continue this charade and we cannot have a policy of rhetoric about denuclearisation. There have to be real steps here.”
Since the North began its rhetoric of threats foreign investors sold $3.2billion more South Korean stocks than they bought this year.
Adding to the Won’s gains was today’s strengthening of the Japanese Yen, which was bolstered by risk aversion in commodity based currencies. A stronger Yen means that Korean electronics and car industries can compete more effectively against their Japanese rivals. They have also been assisted by the weakening of the currency in recent weeks as the weaker Won improved exports.
“The two main factors supporting the Won’s gains are easing tensions with North Korea and the slowing of the Yen’s fall,” said Hong Seok Chan, an analyst at Daishin Economic Research Institute in Seoul. “The U.S treasury’s report asking countries to refrain from intervening in the market sends a signal not only to Japan but also to the Korean government.”
Today sees the North celebrate the birth of its founder Kim-il-sung and could see tensions escalate yet again as speculation grows that they could launch a missile to mark the occasion.
Current South Korean Won exchange rates
As of 10.50 am
The Pound Sterling to Korean Won exchange rate is currently trading in the region of 1713.683
The Euro to Korean Won exchange rate is currently trading in the region of 1462.109
The US Dollar to Korean Won exchange rate is currently trading in the region of 1118.675
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