SEOUL: South Korea’s won fell to a two-week low as the dollar strengthened and the central bank chief said the nation’s growth is facing increasing uncertainties.
Exports probably fell in May due to cheaper oil prices and a delay in the recovery in global trade, Bank of Korea Governor Lee Ju Yeol said Tuesday at a meeting with economists. The Bloomberg Dollar Spot Index, which tracks the greenback versus 10 major peers, rose for a third day after Federal Reserve Chair Janet Yellen said Friday raising borrowing costs in 2015 will be “appropriate” provided the U.S. economy meets forecasts.
The won declined 0.7 percent from May 22 to 1,097.90 a dollar as of 10:29 a.m. in Seoul, prices from local banks compiled by Bloomberg show. It reached 1,099, the lowest since May 13. Local markets were shut Monday for a holiday. The currency has strengthened 1 percent versus the greenback this quarter and advanced 2.4 percent against the yen.
“Worries about exports and the won’s relative strength have been in place for a while,” said Son Eun Jeong, a Seoul-based currency analyst at Woori Futures Co. “These concerns are likely to limit any gains in the won.”
