Won Rises to Seven-Week High as Exporters Sell Overseas Proceeds South Korea’s won rose to a seven-week high on speculation exporters are converting overseas sales proceeds to meet month-end expenses. Government bonds gained. Daewoo Shipbuilding & Marine Engineering Co. won an order to build two LNG ships, the company said in a July 26 statement. Federal Reserve Chairman Ben S. Bernanke told Congress earlier this month that any reduction in stimulus would depend on the performance of the world’s largest economy. The U.S. central bank’s monthly purchases of $85 billion of bonds have fueled demand for emerging-market assets. The Federal Open Market Committee starts a two-day meeting tomorrow to review policy. “Exporters may sell dollars from the overseas deals and as it’s the end of the month,” said Cho Young Bok, a currency trader at Daegu Bank in Seoul. “The currency’s rise will be limited as investors are cautious before the FOMC meeting.” The won rose 0.2 percent to 1,109.95 per dollar as of 10:02 a.m. in Seoul, the strongest level since June 7, according to data compiled by Bloomberg. The currency gained 2.9 percent versus the dollar this month and has weakened 4.2 percent in 2013. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, climbed 14 basis points, or 0.14 percentage point, to 7.45 percent. A gauge of South Korean manufacturers’ confidence fell to the lowest since February, declining to 73 for August from 78 in July, according to a Bank of Korea statement today. Companies cited sluggish domestic demand and uncertain economic outlook as difficulties for their businesses. The yield on the 2.75 percent government bonds due June 2016 fell two basis points to 2.92 percent, according to Korea Exchange Inc. prices. It rose four basis points this month.
Posted on: Mon, 29 Jul 2013 01:45:44 +0000
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