Measures will be taken to stabilize the exchange rate when “exceptional” moves occur, Kim Yi Tae, director of foreign exchange at the Ministry of Strategy and Finance, said the same day.At 1150 won per dollar, it's much closer to what it should be than, say, back in 2008 when it shot up to 1600 won or so for no good reason. Still, I always thought 1000 won or so would be a more natural rate (though wouldn't it be wonderful if it came down to 800 won per dollar again?).
“The government is allowing the won to gain somewhat as it is wary that U.S. pressure on China to appreciate its currency will spill over to Korea,” said Seo Jeong Hun, chief economist at Korea Exchange Bank in Seoul. “Economic fundamentals and strong exports give the won more room to strengthen in the long- term.”
Wednesday, September 29, 2010
KRW at four-month high
That's good news for those of us who get paid in Korean won, which still includes me. And the trend may continue, but it depends on factors like (I think) the appreciate of the yuan: