The Korean won rose the most to the U.S. dollar among key Asian currencies over the past month amid continued capital inflows and prospects for the Fed’s cheap money policy, data showed Tuesday.
The won surged 4.41 percent against the greenback between Sept. 10 and Monday, making it the best performer among the eight Asian currencies, including the yen, according to data compiled by the Bank of Korea (BOK). In the cited period, the Singapore dollar had the second-biggest rise, going up 2.85 percent to the greenback, followed by the Thai baht’s 2.8 percent gain and the yen’s 2.67 percent advance, the data showed.
The Chinese currency climbed 1.66 percent per the greenback amid growing pressure from the U.S. to accelerate the yuan’s appreciation while the Malaysian ringgit shed 0.24 percent to the dollar.
The won’s sharp gain came amid efforts by advanced economies to weaken their currencies and growing prospects that the U.S. Federal Reserve is set to resume additional quantitative easing.
Drives by major economies to push down the value of their currencies come as faltering growth and stubbornly high unemployment rates are luring them into relying more on exports as a way to boost growth.
Amid robust exports and sustained inflows of foreign stock and bond funds, the Korean unit has risen 4.28 percent per the dollar so far this year. In September alone, the won gained more than 5 percent against the dollar.
Analysts said the local currency is expected to be under upward pressure to the dollar, amid expectations that the won may rise to the 1,100 level to the greenback within this year. (PNA/Yonhap)