South Korea’s won rose to its highest level in seven weeks against the dollar as advances in global stocks boosted demand for riskier assets.
The won jumped 0.3 percent to trade at 1,014.28 per dollar in Seoul close. It had earlier touched 1,013.66, its highest level since July 10. The won’s one-month implied volatility, a measure of the expected swings in the exchange rate used to set prices to options, plunged 11 basis points or 0.11 percentage point, to 5.85 percent.
The Kospi Index of South Korean stocks extended its gains for the fourth straight day after the Standard & Poor’s 500 Index touched a record high on Tuesday. Exporter demand for the dollars also boosted the won.
“Equity gains are supporting the won, and recently we’ve seen bullish dollar bets wane as exporters sell the greenback whenever the won weakens,” Jahng Won, a Seoul-based currency trader for Shinhan Bank, told Bloomberg News.
The yield on South Korea’s 3.5 percent government bonds that mature in March 2024 fell for the third successive day, retreating three basis points to 3.04 percent, the weakest level in over three weeks.
Meanwhile, the Argentina’s peso touched a new low as investors remain cautious after the country defaulted on its debt payments in July. The peso tumbled 0.1 percent at 12:46 pm Buenos Aires time to 8.4077 pesos per dollar, a record low, in the official market. It also declined 1.6 percent to 14.2 pesos per dollar in the illicit black market, also a record-low.
Argentina defaulted on its July debt payments after a U.S. court blocked its international bonds payment after President Cristina Fernandez de Kirchner declined to pay a consortium of holdout creditors led by Elliot Management Corp.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 email@example.com