Korean Won Rises to 17-Month High on Rate Meeting as Stocks Drop
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South Korea’s won rose to a 17-month high, while three-year bonds fell after the central bank kept borrowing costs unchanged. Automakers’ shares fell on concern a stronger currency may hurt profit, dragging the Kospi index to its biggest weekly drop since November.
The Bank of Korea left its seven-day repurchase rate at 2.75 percent today in a decision predicted by all but one of 14 analysts surveyed by Bloomberg. One had forecast a 25 basis point cut, after similar moves at reviews in July and October. Governor Kim Choong Soo said he will closely monitor the movements of the won, the best performer of the past year among 16 major currencies tracked by Bloomberg.