Korea’s Won Gains Most in a Week on Ship Order, U.S. Jobs DataKyoungwha Kim
South Korea’s won rose the most in more than a week and government bonds advanced after shipbuilders received orders and U.S. payrolls data eased concern the Federal Reserve will accelerate its stimulus cuts.
Samsung Heavy Industries Co. won a 621 billion won ($588 million) contract for five container ships to be delivered by September 2016, according to a Jan. 9 regulatory filing. Local companies may get more than $70 billion in overseas plant orders this year, compared with $63.7 billion in 2013, the trade ministry said Jan. 7. An increase of 74,000 in December payrolls lagged the 197,000 advance estimated by economists, U.S. Labor Department figures showed Jan. 10.
“Positive sentiment from ship orders is supporting the won’s strength,” said Jeon Seung Ji, a currency analyst at Samsung Futures Inc. in Seoul. “The dollar is weak globally after poor U.S. jobs data.”
The won appreciated 0.4 percent to 1,056.78 per dollar in Seoul, the most since Jan. 2, data compiled by Bloomberg show. One-month implied volatility, a gauge of expected moves in the exchange rate used to price options, fell 37 basis points, or 0.37 percentage point, to 6.34 percent.
Government bonds advanced the most in a week. The yield on the 3.25 percent notes due September 2018 dropped four basis points to 3.23 percent, according to Korea Exchange prices.