The South Korean won appears headed to advance this week after earlier recording the largest monthly advance of 31 major currencies last month on favorable economic report.
The won, which has surged 1 percent this week, rose 0.2 percent on Friday to 1,031.25 a dollar as of 9:40 a.m. in Seoul, according to Bloomberg data. The won gained over 3 percent in April, which was more than the second-best performing currency, the Colombian peso that advanced 1.8 percent.
“The export and current-account figures aren’t a big surprise, but continue to support the strong won trend,” Son Eun Jeong, a currency analyst at Woori Futures Co in Seoul, told Bloomberg. “The exchange rate of 1,030 per dollar is working as a resistance level on intervention cautions. Trading will be slow today as South Korea markets will be shut for the next few days.”
South Korea’s exports rose 9 percent in April on an annual basis, exceeding the average estimate of a 5.5 percent growth in a Bloomberg poll of economists. Current account surplus expanded to $7.35 billion in March, reported its Central Bank on Tuesday. The South Korean central bank is keenly monitoring the effect of the won on exports.
The one-month implied volatility of the won, which measures the expected shifts in the exchange rate used to assign prices to options, advanced two basis points on Friday to 6.55 percent. South Korea’s financial markets will be closed on Monday and Tuesday for national holidays.
Consumer prices in the country rose 1.5 percent last month, the most since August, according to a report released by the government. To register for a free 2-week subscription to ForexMinute Premium Plan, visit www.forexminute.com/newsletter.
To contact the reporter of this story; Yashu Gola at firstname.lastname@example.org