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S. Korea's currency continues to strengthen on U.S stimulus talks

All News 10:17 December 04, 2020

SEOUL, Dec. 4 (Yonhap) -- South Korea's currency continued to gain ground against the U.S. dollar Friday, as the risk appetite is growing over signs of progress in U.S. stimulus talks and developments of coronavirus vaccines.

The won was quoted at 1,092.30 won per U.S. dollar as of 9:04 a.m., up 4.7 won from the previous session's close.

On Thursday, the local currency closed at 1,097.00 won per U.S. dollar, marking the strongest level since June 14, 2018.

The won, along with other peers, has strengthened against the U.S. dollar due to optimism over vaccine developments, with U.S. President-elect Joe Biden promising to swiftly deal with stimulus packages.

The U.S. dollar has also been weakening since the U.S. Federal Reserve said in its September rate-setting meeting that it will keep interest rates near zero until inflation is on track to meet its 2 percent target.

Jeon Seung-ji, a currency analyst at Samsung Futures Inc., said the won is expected to test the 1,090 won level Friday, depending on whether foreign investors would become net buyers of local stocks.

Analysts have said the U.S. dollar's weakening may continue for the time being as investors sold safe-haven assets over developments of coronavirus vaccines.

Last month, Finance Minister Hong Nam-ki said financial authorities have been closely monitoring the foreign exchange market, warning that they are ready to take action at any time to smooth out the local currency's sharp gains.

Hong voiced concerns about the Korean currency's rapid strength against the U.S. dollar, saying that excessive currency volatility is not desirable.

S. Korea's currency continues to strengthen on U.S stimulus talks - 1


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