Won in Longest Run of Gains Since July on Better Current AccountKyoungwha Kim
South Korea’s won rose for a fifth day, the longest run of gains in almost five months, as data showed the current-account surplus increased last month.
The excess in the broadest measure of trade was $9 billion for October, compared with a revised $7.4 billion in September, the central bank reported today. The full-year surplus will be a record $84 billion, the monetary authority estimated Oct. 15.
The won advanced 0.8 percent to 1,098.36 per dollar at the close in Seoul, according to prices compiled by Bloomberg. It touched a one-week high of 1,098.15 earlier and has rallied 1.5 percent in the five days through today, the longest winning streak since July 3. The Korean currency strengthened 0.4 percent to 9.36 versus the yen.
“The current-account surplus data reminds the markets of the fundamental strength in the Korean economy,” said Son Eun Jeong, a Seoul-based foreign-exchange analyst at Woori Futures Co. “This, combined with month-end export settlements, is lending support to the won.”
The yield on the 2.75 percent government bonds due June 2017 rose one basis point, or 0.01 percentage point, to 2.11 percent, according to data compiled by Bloomberg. The 10-year yield was steady at 2.66 percent.