Won Drops Most in Three Weeks After BOK Rate Cut; Bonds Advance
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South Korea’s won snapped a four-day rally to slide the most in three weeks as the central bank unexpectedly cut borrowing costs. Government bonds gained.
Governor Kim Choong Soo and his board lowered the benchmark seven-day repurchase rate to 2.5 percent from 2.75 percent, the central bank said in a statement in Seoul today, joining monetary authorities in Australia, Europe and India in easing policy. Six of 20 economists surveyed by Bloomberg News predicted the move while the rest forecast no change. Kim, who opposed a cut last month, backed the reduction.