South Korean Won Hits 4-Month High Against U.S. Dollar

The South Korean currency has been favored since the beginning of the year by both domestic and international signs of improved economic conditions.

The South Korean stocks rallied this Monday pushing the national currency up as extremely favorable economic reports were released in both local and international markets. The national central bank injected less than forecast foreign currency in the domestic market, which helped rising speculations that the South Korean banks have eased their foreign currencies liquidity issues. One of South Korea’s leading trading partners, China, has been posting consecutive reports indicating that economic conditions are improving, which have a direct effect in the price of the won.

Analysts in Asia are expecting the South Korean currency to continue its rally, affirming that the mood among investors is highly optimistic, and if the next months follow the actual trend of positive news, the won is very likely to rise sharply, mainly against the U.S. dollar and the yen. Signs of economic recovery in the South Korean market are also being regarded by economists are greater than estimated, indicating that the national economy may revive its days of growth quickly.

The USD/KRW remained stable from Friday’s price, but has fallen significantly since the beginning of April, from 1379.31 to 1277.4 presently.