SEOUL: South Korea’s won headed for the biggest gain in seven months as foreigners bought local assets on signs the U.S. will raise interest rates at a gradual pace.
Bond yields fell to record lows as global funds increased their holdings after the Federal Reserve signaled it’s in no hurry to tighten monetary policy, easing concerns about outflows from emerging markets. Bank of Korea board member Ha Sung Keun said in Seoul Wednesday any change in the Fed’s policy will have a limited impact on South Korea as its economic fundamentals are solid compared with other developing nations.
The won climbed 1.6 percent this week, the most since Aug. 15, to 1,105.23 a dollar as of 11:20 a.m. in Seoul, data compiled by Bloomberg show. The currency rose 0.2 percent on Friday, paring its monthly and quarterly declines to 0.7 percent and 1.3 percent, respectively.
