South Korean Won Rises Most in a Week as Dovish Fed Hurts Dollar

  • Most Asian currencies strenghten as greenback gauge retreats
  • Market still cautious before Brexit vote: Samsung Futures

Most Asian currencies rose as the dollar extended its decline after the Federal Reserve signaled a slower pace of interest-rate increases.

South Korea’s won and Taiwan’s dollar gained the most in at least a week as a gauge of the greenback fell for a second day after the Fed kept rates on hold and the number of officials who see just one hike this year rose to six from one in the previous forecasting round in March. Policy makers also slowed the pace of expected moves in both 2017 and 2018.

Asian currencies are stabilizing after incurring losses amid anxiety that Britain will vote to leave the European Union. Fed Chair Janet Yellen said that the U.K.’s June 23 referendum was a factor in the central bank’s decision to hold rates steady and could have consequences for the global economy and markets. The Bank of Japan refrained from expanding its record monetary stimulus before policy reviews in Indonesia and the U.K. Thursday.

“The Fed’s dovish comments are depressing the dollar today,” said said Jeon Seung Ji, a currency analyst at Samsung Futures Inc based in Seoul. “But the won’s gains are somewhat limited as the market is holding off before the Brexit vote this month.”

The won climbed 0.2 percent, the most since June 8, to close at 1,171.35 per dollar in Seoul, according to prices from regional banks compiled by Bloomberg. Taiwan’s dollar also rose 0.2 percent to 32.39 versus the greenback. The Bloomberg Dollar Spot index fell 0.3 percent to the lowest level since June 9.

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