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Korean Won – Market News
Currencies in the Asia-Pacific region fell against the US dollar on Thursday morning after the Federal Reserve signaled that it would raise interest rates again this year and would begin shrinking its balance sheet in October. The Fed funds rate was left unchanged at its current range of 1–1.25%.
Although the majority of economists had expected this would be the Fed’s position, for some, doubt had crept in following hurricanes Harvey and Irma. View article >
To the surprise of many, the Bank of Canada raised interest rates on Wednesday to 1.0%, from 0.75%, which sent currencies in the Asia-Pacific region tumbling against the Canadian dollar.
The Bank of Canada had been expected to raise the cost of borrowing again this year, following a quarter-point hike in July, but most analysts had been predicting a move in October. View article >
A better than expected Chinese manufacturing PMI failed to lift the yuan or Australian dollar on Thursday morning against a US dollar determined to end the month in the green.
The Chinese PMI for the manufacturing sector came in at 51.7 for August, slightly ahead of the market forecast of 51.3 and July’s reading of 51.4. The less important service sector PMI disappointed slightly with its print of 53.5, versus an expectation of 54.5. View article >
On Wednesday morning, the Australian dollar-to-New Zealand dollar exchange rate came within three pips of making a sixteen-month high after it finally breached 1.1 – the major technical resistance level in this rate. A rally slightly above 1.1 on March 16th (to 1.1019) was quickly rejected and preceded a three-month decline in AUD/NZD to levels around 1.037. At noon in Sydney, AUD/NZD was trading at 1.1001, with a session high of 1.1017. View article >
Investors fled to the safety of gold, government bonds and the Japanese yen on Tuesday as geopolitics took centre stage.
After North Korea fired a missile over Japan, money flooded into gold, which rallied to a nine-month high of $1,325, and into yen, which strengthened to the low 108s against the dollar. Prices for Treasuries, gilts and bunds also rose, pushing yields down. View article >
Most Asian currencies ended Wednesday higher against the dollar, albeit on a rather unspectacular day of trading. With a few exceptions, markets traded quietly ahead of the Jackson Hole symposium (24-26 August) at which Fed Chairwoman Janet Yellen and ECB President Mario Draghi might give important updates on monetary policy.
The star of the day in Asia was without doubt the Korean won. View article >
For a portion of 2017, the South Korean won had been Asia’s best performing currency. Over the past month, it has, however, deviated from what has been a stable path for Asian currencies generally.
Between July 27th and Friday’s close, the Japanese yen, Chinese yuan and Thai baht rose against the dollar by 1.8%, 1.2% and 0.5% respectively, and most other Asian currencies remained little changed, but the Korean won fell by 2.6% – a fall which places the won as Asia’s worst performer during this period. View article >
The Korean won gained nearly 1% against the US dollar yesterday and by doing so recorded its best day since April. USD/KRW ended the New York session at 1137.4. The move took the won’s 2017 gain against the dollar to 6%.
Against the euro, the won gained 1.4% – its best day since November – but the currency remains weak by recent standards and remains down on the year having suffered in the presence of a broad euro uptrend which began in April. View article >
A rally in the US dollar prompted by moderately hawkish Fed speakers pushed emerging market Asian currencies such as the Thai baht, Philippine peso and Malaysian ringgit lower on Tuesday. Asian currencies from developed economies but which nonetheless remain second tier and under the “emerging” umbrella, such as the Korean won and the Taiwan dollar, also declined.
Charles Evans, President of the Chicago Fed, said on Tuesday that US economic fundamentals are good and that he expects inflation to rise, although he did hint that the Fed could wait until December before raising interest rates again. View article >
In the four-weeks leading up to last Friday’s close (May 12th), the Japanese yen had been one of the world’s worst performing currencies against the US dollar, falling 4.3% within that time.
The yen’s weakness during that period marks one hell of a turnaround from the four-weeks immediately prior, in which the yen was one of the world’s strongest currencies, gaining 3.9% against the dollar. View article >