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.
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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.”
