WSJ, OCTOBER 7, 2011, 4:16 A.M. ET.
S Korea Won Up Late On ECB Measures; Focus On U.S. Jobs Data:-?
SEOUL (Dow Jones)--The South Korean won rose 1.1% against the U.S. dollar late Friday as
risk sentiment improved after the European Central Bank announced measures to prevent a liquidity crisis among euro-zone banks.
On Thursday,
the ECB said it would leave its key interest rate unchanged and pledged to help troubled banks by buying covered bonds from next month.
It also said it would finance banks with loans with maturities of up to 13 months later this year.
This boosted risk appetite and the local stock index gained 2.9% following the news, adding to strength in the won.
The dollar briefly fell to a one-week low of KRW1,175.20 during Friday's session but was supported by importers' bargain buying, traders said. Investors were also cautious before the release of key U.S. non-farm payrolls data, due later in the global day, and held back from aggressive dollar selling, they said.
While investors shift their focus to the payrolls data, other jobs data released earlier this week--including weekly jobless claims Thursday and a private-sector jobs report Wednesday--have raised hopes that the key payrolls numbers will be strong, said Byeon Ji-young, a currency analyst Woori Futures.
But she also noted that "
the market is expected to remain sensitive to any negative news about the euro-zone debt issue for some time." :-?
...
(
http://online.wsj.com/article/BT-CO-20111007-702917.html)


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