The South Korean Won has halted its longest run of gains in two months after speculation that importers bought US Dollars weighed upon the currency.
One Pound Sterling is worth 1,727.397 Won
Over the previous week the Won managed to rally by as much as 2.6%, today however it slipped by 0.2% against the Dollar and is set to make further declines. So far this year the Won has weakened by 6.1% over ongoing worries over tapering to the US Central Banks monetary easing policy and the tension with North Korea earlier in the year.
Official data out of the county showed that South Korean exports declined by 0.9% last month compared to the previous year. In April exports rose by 3.2%.
“Importers are pursuing Dollars to pay the bills, which must have offset the amount of the Dollars sold by heavy industry companies from the orders abroad,” said Jude Noh, chief currency trader at Suhyup Bank in Seoul. “It’s a thin market today; the currency’s movement may be limited in either direction.”
The ongoing weakness of the Japanese Yen has also affected the economy of South Korea as it finds it difficult to compete with the relatively low price of Japanese exports. According to economists, South Korean exports are likely to recover in the coming months, while renewed weakness in the yen could hurt some industries, especially automobiles, auto parts, steel and machinery.
Current South Korean Won (KRW) Exchange Rates
As of 12.55 pm
The Pound Sterling to Korean Won exchange rate is currently trading in the region of 1,727.397
The Euro to Korean Won exchange rate is currently trading in the region of 1,480.542
The US Dollar to Korean Won exchange rate is currently trading in the region of 1,134.526
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