Korean Job Discussion Forums

[Yaya]

Goldman (Sachs) says a more plausible scenario for the won is that it would remain stable under 1,200, supported by strong FX intervention. With the nation�s stock of foreign currency now at a record high of over $300 billion, Korea has a larger store of firepower to defend its currency than in 2008.

http://blogs.wsj.com/korearealtime/2011/09/30/if-europe-craters-what-happens-in-korea/tab/print/

[akcrono]

Thanks for that, makes me breathe easier =).

[Freakstar]

Yup. Good stuff. I hope they're right.

[HELICIS]

Everyone who tries to defend their currency ends up pissing it away. Parasitic bastards like Soros can do a lot of manipulation that can end up costing them a lot!

[rainism]

this sounds like what Goldman sends out to their "clients" and for "public consumption".

which means it's worth less than the toilet paper it's printed on. (or a 10,000 won plastic paper note)

what would be far more useful is how the Goldman prop trading desks are dealing with the situation.

my guess?

sell won first.

figure out what to do later.

it's a long and successful recipe for trading success.

[Koreadays]

it's all ridged!

[rainism]

what's kind of funny is just before the won spiked up, I was kind of wondering why it wasn't getting whacked as the equity markets were clearly getting jittery.

I was almost ready to give some kind of "credit" for the won's steadiness in the face of uncertainty.

well, that all disappeared within the span of a week.

Like I said.. sell won first, figure out what to do later.

if you sold won when it crossed 1100 to the upside, you'd be currently sitting on a 10% profit as you try to sort things out.

what do you think that the odds are that the won can get back to 1100, not even in a week, but let's say a month?????

extremely REMOTE.

under the best case scenario (which is a pipedream currently based on what the charts are currently showing) it would very SLOWLY grind its way back down to 1100. Would take like 6 months. Whereas the move from 1100 to 1200 took 6 days.

[actionjackson]

It took 3 years to go from 1500 to 1050.

[tran.huongthu]

Korean Won was much worse last time around although I can definitely see it hitting 1300-1350 at some point.

[sojusucks]

Korea is still a small fish in a big pond, economically. Don't try to tell them that, but it's true.