Korean Job Discussion Forums

[Yaya]

SEOUL, July 31 (Yonhap) -- The South Korean currency is expected to rise above the 1,000 won level against the U.S. dollar within this year amid the greenback's weakness stemming from the U.S. government debt crisis, market watchers said Sunday.

The won's expected appreciation is feared to erode exporters' profitability and put a damper on South Korea's exports by making them more expensive in overseas markets. South Korea, Asia's fourth-largest economy, relies on exports for more than 50 percent of its economic growth.

Analysts said there is a possibility that the Korean currency will appreciate above the 1,000 won mark within this year as U.S. politicians remain split over a debt-limit hike with the Aug. 2 deadline looming.

"The local currency could gain to the 1,000 won level against the greenback by the end of the year," said Huh In, an international finance analyst at the state-run Korea Institute for International Economic Policy (KIEP).

"There is even a possibility that the Korean currency will likely rise even higher."

The local currency closed at 1,054.5 won to the greenback, down 2.8 won from Thursday's close, as investors shunned risky assets. However, the South Korean won has appreciated about 8 percent to the dollar since January.

Hyundai Research Institute, a private economic think tank, offered a similar outlook.

"The local currency is expected to climb to the 1,020-1,030 won range to the greenback in the second half," said Lim Hee-jeong, a researcher at the institute. "But we can't rule out the possibility that it could rise above the 1,000 won level."

Nomura Securities Co. predicted the Korean currency to appreciate to the 1,020 won mark to the dollar in the fourth quarter of this year before rising as high as an average of 960 won next year.

With the Korean currency widely expected to gain strength against the dollar, foreign investors are snapping up South Korean government and corporate bonds, a brokerage house said.

As of Thursday, foreign holdings of listed and unlisted bonds reached a record 86.6 trillion won (US$82.2 billion), with overseas investors buying more than 3 trillion won worth of debts over the past month alone, according to Daewoo Securities Co.

http://english.yonhapnews.co.kr/news/2011/07/31/78/0200000000AEN20110731000600320F.HTML

[ThingsComeAround]

Won't be cool unless the Euro and Yen follow suit

[Koreadays]

when it hits 1000 BUY!
wait 3-4 years for another recession and when the won goes to 1500 again
SELL!!!

easy 50% you ever made..

[young_clinton]

Why 1000? It's going below a 1000.

[Captain Corea]

[rainism]

[sojusucks]

I took it on the chin when it was at 1600 so anything at 1000 will be greatly appreciated.

[Swampfox10mm]

Will the gov't avoid playing with the won again this time around?

[rainism]

[Milwaukiedave]

I just transferred 3.2 million a few days ago at about 1050 and got $3000. The bank here charged $18, my bank charged $8

At 1000 it would have been $3200
At 950 it would have been $3368
At 900 it would have been $3555

[Highwayman]

Would the free trade deal (if ever ratified) have any long-term effect on Korea's currency manipulation regime?

The debt deal is done, but it seems pretty weak, and it's going to be less than 2 years before another one is needed.

Amerika, for all the supposed greatness of its Ivy League, is going down the toilet bowl of history.

[ZIFA]

[rainism]

[Stan Rogers]

I'll believe it when I see it.

[Highwayman]