The South Korean won has risen the most among major currencies against the U.S. dollar since end-June, data showed Thursday, apparently due to the country’s sound economic data.
The won has climbed nearly 6.4 percent as of Monday against the greenback since end-June, hovering far above 4.9 percent tallied by the British pound and 3.5 percent posted by the euro over the cited period, market data showed.
Taiwan and Singapore also saw their currencies appreciate 1.6 percent and 1.2 percent, respectively, against the U.S. dollar over the cited period. The Chinese yuan climbed 0.4 percent against the greenback.
In contrast, other Asian currencies fell against the greenback over the cited period amid the rising woes that the U.S. Federal Reserve’s tapering of its economic stimulus may deal a harsh blow to emerging markets in Asia.
The Indonesian rupiah has plunged 13.3 percent against the U.S. dollar since end-June, and the Indian rupee has moved down 4.8 percent.
A monetary easing move by an advanced country usually causes investors to set their sights on riskier emerging markets, while a reduction in the move sparks them to relocate their investments.
The Japanese yen moved down 0.2 percent against the U.S. dollar amid its “Abenomics” policies, which refer to a mixture of aggressive monetary and fiscal policies preached by Prime Minister Shinzo Abe.
Market watchers said the won’s sharp gain is attributable to its robust economic data and improved trade data.
The South Korean economy grew at the fastest pace in over two years in the second quarter by expanding 1.1 percent, meeting an earlier estimate on increased fiscal spending and improved exports.
In August, the country’s outbound shipments also came to about $46.36 billion, up 7.7 percent from the same month last year, separate data by the Ministry of Trade, Industry and Energy showed.
The won’s sharp rise against the U.S. dollar may deal a harsh financial blow to South Korean exporters, as it inflicts foreign exchange losses, market watchers added. (Yonhap News)
