The Korea Herald

지나쌤

Won drops to 3-week low against dollar

By Seo Jee-yeon

Published : Oct. 31, 2014 - 21:26

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The South Korean won sank to a three-week low against the U.S. dollar Friday, falling for the second consecutive day as Japan’s central bank announced a further monetary easing and sound growth data from the U.S. raised the possibility that the Federal Reserve may advance its timetable for a much-awaited rate hike.

Following the Bank of Japan’s move, the local currency advanced sharply against the Japanese yen.

The Korean won closed at 1,068.50 to the greenback, sharply down 13 won from the previous session’s close and the lowest since Oct. 10, when the comparable figure was 1,070.50 won.

Earlier in the day, the Bank of Japan said it would jack up its asset purchases by up to 20 trillion yen to some 80 trillion won in order to boost the sagging growth in the world’s No. 3 economy.

“The won-dollar rate may exceed the 1,070 won level next week, possibly breaking through the 1,080 won threshold,” said Chung Kyong-pal, an analyst at KEB Futures.

Further supporting the dollar’s strength was sound economic growth from the U.S.

Data on Thursday showed the world’s largest economy grew 3.5 percent in the third quarter, topping the market estimate of a 3 percent expansion, underpinning the greenback against its major peers.

Market players are betting on the rate hike after the Federal Open Market Committee, a policymaking body of the Fed, decided Wednesday to stop its monthly purchase of $15 billion worth of bonds, introduced to boost the U.S. economy, from next month. (Yonhap)