The Korean won (KRW) hit a one-year high on 19 October when it traded at 1,103 per USD, 1.0% stronger than the level recorded on the same day of the previous month. On an annual basis, the currency is 2.5% stronger than in the same month last year. The strengthening of the won does not bode well for exporting companies, as a stronger currency could curb shipments overseas and thus further depress the already feeble external sector. Meanwhile, on 9 October, Korea and Japan agreed to end as of 31 October a temporary increase in the maximum amount of the bilateral currency swap arrangements by USD 57 billion, which was agreed in October last year. The value of the currency swap will thus return to the previous USD 13 billion. Both finance ministers and central banks stated that stable financial markets and sound macroeconomic conditions rendered the measure unnecessary. However, market analysts point to tensions between the two countries over the Dokdo/Takeshima islands as the trigger of the decision.
Korea Exchange Rate
Won appreciates further in October
October 19, 2012
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Korea Economic News
October 13, 2016
At its 13 October monetary policy meeting, the Bank of Korea (BoK) announced that it will hold the base rate constant at a record low of 1.25%, which was largely in line with market expectations.
October 5, 2016
In September, consumer prices rose 0.6% over the previous month, which contrasted the 0.1% decrease in August and overshot the 0.2% increase the markets had expected.
October 3, 2016
Korea’s Customs Services reported that exports totaled USD 40.9 billion in September, which represented a 5.9% contraction over the USD 43.4 billion recorded in the same month last year.
September 30, 2016
Activity in Korea’s manufacturing sector deteriorated significantly in Q3.
September 30, 2016
The forward-looking business confidence indicator (BSI) for the manufacturing sector produced by the Bank of Korea (BoK) rose from 74 points in September to 75 points in October.