Korea Won - rates !!!
Korea Won Trades Near Three-Year High on Greek Rescue Optimism; Bonds Fall
By Kyoungwha Kim - Jul 21, 2011 2:37 PM GMT+0800
South Korea’s won traded near its strongest level in almost three years as optimism European leaders will break a deadlock over a new Greek bailout bolstered demand for riskier assets, helping emerging markets draw funds.
German Chancellor Angela Merkel and French President Nicolas Sarkozy reached a “joint position on Greece’s debt situation” before a summit today, according to Merkel’s spokesman. The euro rose to a one-week high versus the greenback.
The won, Asia’s best-performing currency of the year, may be supported before South Korea’s government announces measures to rein in inflation next week.
“All eyes are on the euro region’s meeting today,” said Hwang Sun Min, a Seoul-based currency dealer with Kookmin Bank, the nation’s largest lender. “
The won will probably sustain its upward momentum as the euro’s rebound boosts demand for Asian currencies.”
The won traded at 1,054.70 per dollar as of the 3 p.m. close in Seoul, from 1,055.30 yesterday, according to data compiled by Bloomberg. It has appreciated 6.7 percent this year and touched 1,053.68 today, the strongest level since August 2008.
The government will announce
measures to ease inflation early next week, the nation’s presidential office said in a statement yesterday. President Lee Myung Bak ordered the creation of a task force to monitor prices and called for a Cabinet meeting this week to discuss living costs.
A stronger currency may be favored to reduce the price of imports.
South Korea’s benchmark five-year bonds fell for a second day. The yield on the 4 percent notes due March 2016 rose two basis points to 3.95 percent, according to prices from Korea Exchange Inc. A basis point is 0.01 percentage point.
To contact the reporter on this story: Kyoungwha Kim in Singapore at
[email protected]
To contact the editor responsible for this story: Sandy Hendry at
[email protected]
(
http://www.bloomberg.com/news/2011-...high-on-greek-rescue-optimism-bonds-fall.html)


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