SEOUL: The South Korean won up against the U.S. dollar on Friday, tracking a expand in the Japanese yen as Switzerland’s surprising decision to scrap its currency’s cap increased demand for safer property.
The local currency was changing hands at 1,076.80 per dollar as of 1:54 p.m., up 6.4 won from the previous session’s close.
On Thursday, the Swiss National Bank’s move to abandon its currency cap against the euro roiled the global financial market, sending the Japanese currency higher versus the dollar.
But the Korean won’s gain was limited due to exporters’ dollar-selling and possible intervention by local currency authorities.
“Risk-averse sentiment is sending the yen higher versus other currencies, and the won will move in lockstep with the yen’s direction,” said Chung Kyong-pal, an analyst at KEB Futures Co.
Analysts said the global financial turmoil would continue following Switzerland’s move.
“Switzerland’s move will have a limited impact on the global market but work as a catalyst for further volatility on the currency market,” said Jun Seung-ji, an analyst at Samsung Futures Co.
Meanwhile, the won-yen cross exchange rate stood at 925.17 won per 100 yen as of 1:54 p.m., up 6.22 won from the previous session’s close.
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