Weakened won hits a 2-week low

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Weakened won hits a 2-week low

Korea’s won weakened to the lowest level in more than two weeks yesterday as comments by Federal Reserve officials signaled that the U.S. monetary authority is unlikely to ease the pace of stimulus reductions.

Federal Reserve Bank of Dallas President Richard Fisher, who votes on policy this year, said on Friday that the central bank is providing “more than enough” monetary accommodation. Sales of previously owned U.S. homes dropped in January to the lowest since July 2012, figures showed.

And Korea and Australia have signed a currency-swap agreement for as much as 5 trillion won ($4.6 billion), Bank of Korea said on Sunday.

“The market is paying attention to what Fed officials with voting rights say, and there is a bigger focus on further tapering,” said Bak Jae-sung, a currency dealer at Woori Bank in Seoul.

The currency fell 0.2 percent to 1,074.60 per dollar at the close in Seoul, according to data by Bloomberg. It touched 1,078.25 earlier, the weakest level since Feb. 6. One-month implied volatility, a gauge of expected moves in the won used to price options, rose 30 basis points to 7.69 percent.

Bloomberg


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