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loose_ends
Joined: 23 Jul 2007
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 Posted: Wed Jun 04, 2008 4:20 pm Post subject: Another failed policy? $1CDN=W1005 and getting better... |
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One of my adult students recently told me that 2MB will no longer keep the won low. I guess the people are feeling the increased cost of imported goods.
Anyhow, I've been keeping an eye on the exchange rate. It has been steadily rising, ie, more won for your CDN buck.
Perhaps things will return to normal soon. |
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jdog2050
Joined: 17 Dec 2006
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| Posted: Wed Jun 04, 2008 4:24 pm Post subject: Re: Another failed policy? $1CDN=W1005 and getting better... |
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| loose_ends wrote: |
One of my adult students recently told me that 2MB will no longer keep the won low. I guess the people are feeling the increased cost of imported goods.
Anyhow, I've been keeping an eye on the exchange rate. It has been steadily rising, ie, more won for your CDN buck.
Perhaps things will return to normal soon. |
This isn't a good thing; I read that they're doing it by dipping into their foreign cash reserves. |
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loose_ends
Joined: 23 Jul 2007
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| Posted: Wed Jun 04, 2008 4:36 pm Post subject: Re: Another failed policy? $1CDN=W1005 and getting better... |
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| jdog2050 wrote: |
| loose_ends wrote: |
One of my adult students recently told me that 2MB will no longer keep the won low. I guess the people are feeling the increased cost of imported goods.
Anyhow, I've been keeping an eye on the exchange rate. It has been steadily rising, ie, more won for your CDN buck.
Perhaps things will return to normal soon. |
This isn't a good thing; I read that they're doing it by dipping into their foreign cash reserves. |
What are the predictions for such actions? Are you saying the stronger won is only temporary? |
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marlow
Joined: 06 Feb 2005
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| Posted: Wed Jun 04, 2008 4:43 pm Post subject: |
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It'll be fine in a year or so.
Last week they sold like 700 or 800 million US dollars to correct the won, but US dollars? They're just scrap paper. Actually, worthless numbers in a computer.
Idiots realized that cheap exported cars require steel and energy, which need to be imported. Morons. |
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cedarseoul
Joined: 16 Feb 2008
Location: nowon-gu
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| Posted: Wed Jun 04, 2008 4:53 pm Post subject: |
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| an article in the herald this morning suggests that the won's bearish run (compared with, say, last fall) will continue for some time - but more in the neighborhood of USD1000/1 rather than the 1050, 1060 we were looking at a couple of weeks ago. not sure how that compares to the canadian dollar, but i assume the trend will be roughly comparable. |
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jdog2050
Joined: 17 Dec 2006
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| Posted: Wed Jun 04, 2008 6:16 pm Post subject: Re: Another failed policy? $1CDN=W1005 and getting better... |
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| loose_ends wrote: |
| jdog2050 wrote: |
| loose_ends wrote: |
One of my adult students recently told me that 2MB will no longer keep the won low. I guess the people are feeling the increased cost of imported goods.
Anyhow, I've been keeping an eye on the exchange rate. It has been steadily rising, ie, more won for your CDN buck.
Perhaps things will return to normal soon. |
This isn't a good thing; I read that they're doing it by dipping into their foreign cash reserves. |
What are the predictions for such actions? Are you saying the stronger won is only temporary? |
If they dip too much it'll seriously hurt confidence in Korean economic policies, hurting investment. It's a tricky, emergency mode tactic. Could be pulled off if done wisely, but, it's Korea. |
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loose_ends
Joined: 23 Jul 2007
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| Posted: Wed Jun 04, 2008 7:34 pm Post subject: Re: Another failed policy? $1CDN=W1005 and getting better... |
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| jdog2050 wrote: |
| loose_ends wrote: |
| jdog2050 wrote: |
| loose_ends wrote: |
One of my adult students recently told me that 2MB will no longer keep the won low. I guess the people are feeling the increased cost of imported goods.
Anyhow, I've been keeping an eye on the exchange rate. It has been steadily rising, ie, more won for your CDN buck.
Perhaps things will return to normal soon. |
This isn't a good thing; I read that they're doing it by dipping into their foreign cash reserves. |
What are the predictions for such actions? Are you saying the stronger won is only temporary? |
If they dip too much it'll seriously hurt confidence in Korean economic policies, hurting investment. It's a tricky, emergency mode tactic. Could be pulled off if done wisely, but, it's Korea. |
Yes I understand. I think I'll wait it out a little longer and see how far it drops. I'll then buy a whack load of CDN$, hedge my "bet", and wait till fall of 2008 to exchange the rest of my Won.
I heard Canada might go into a recession around that time, but, who really knows anyway. Fingers crossed...haha. Kind of ironic considering that is the time I'll be returning and looking for employment. |
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ajgeddes
Joined: 28 Apr 2004
Location: Yongsan
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| Posted: Wed Jun 04, 2008 8:21 pm Post subject: Re: Another failed policy? $1CDN=W1005 and getting better... |
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| loose_ends wrote: |
One of my adult students recently told me that 2MB will no longer keep the won low. I guess the people are feeling the increased cost of imported goods.
Anyhow, I've been keeping an eye on the exchange rate. It has been steadily rising, ie, more won for your CDN buck.
Perhaps things will return to normal soon. |
Actually, it's less won. |
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jackson7
Joined: 01 Aug 2006
Location: Kim Jong Il's Future Fireball
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| Posted: Wed Jun 04, 2008 8:31 pm Post subject: |
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Oh no...not the ol' "won rising vs. falling" argument again...as long as we're on the same page, who care? 
"The won's not getting stronger, is it?"
"No."
"It IS getting stronger?"
"No."
"Ahh...so..."
If we need an easy way to remember it...just think of it as follows:
The number of won per X currency is going up = won is falling or getting weaker (versus THAT currency)
The number of won per X currency is going down = won is rising or getting stronger (versus THAT currency) |
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loose_ends
Joined: 23 Jul 2007
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| Posted: Wed Jun 04, 2008 11:44 pm Post subject: Re: Another failed policy? $1CDN=W1005 and getting better... |
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| ajgeddes wrote: |
| loose_ends wrote: |
One of my adult students recently told me that 2MB will no longer keep the won low. I guess the people are feeling the increased cost of imported goods.
Anyhow, I've been keeping an eye on the exchange rate. It has been steadily rising, ie, more won for your CDN buck.
Perhaps things will return to normal soon. |
Actually, it's less won. |
Yes you are right. My mistake. |
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marlow
Joined: 06 Feb 2005
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justaguy
Joined: 01 Jan 2008
Location: seoul
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| Posted: Fri Jun 06, 2008 8:38 pm Post subject: |
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A lot can happen between now and 2012. Especially in Korea.
But I hope your right. |
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marlow
Joined: 06 Feb 2005
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| Posted: Fri Jun 06, 2008 8:52 pm Post subject: |
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| justaguy wrote: |
A lot can happen between now and 2012. Especially in Korea.
But I hope your right. |
A LOT? Understatement of the century. 
But I hope it's right, too. That's around the time I want to cash out and buy a house in Canada. I hope the Canadian real estate market bottoms out then, too. |
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aka Dave
Joined: 02 May 2008
Location: Down by the river
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| Posted: Sat Jun 07, 2008 12:37 am Post subject: |
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Today oil prices spiked, the stock market and the dollar both tanked.
I think skyrocketing oil prices (aside from being hugely dangerous for the world economy) are actually good news for the won.
A weak won would mean the Korean economy would have to dole out a lot more money for energy, so there's now a strong economic incentive to keep the won strong.
I'm surprised about how low the current account balance was in 08 on the Economist graph. Last week there was an article that the account balance was weakening. Maybe just a short term thing. (current account balance is the biggest internal factor determing the strength of a currency).
Anyway, that's good news, and as I trust the Economist I will start holding won. |
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loose_ends
Joined: 23 Jul 2007
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| Posted: Sat Jun 07, 2008 8:08 pm Post subject: |
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| Quote: |
| 1.00 CAD=995.876 KRW |
As of today. Thank god. I was starting to get worried there. |
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