(MENAFN- Qatar News Agency) Oul june 12 (qna) - the south korean currency will continue to rise against the us dollar possibly breaching the psychologically sensitive 1000-won level within this year backed by a steady current account surplus and improving economic outlook for asia's fourth-largest economy analysts said thursday.
but the pace of its appreciation will be curbed in part by limited intervention by the currency authorities south korea's news agency (yonhap) reported.
the local currency gained some 12% against the greenback in the past year and the gain has further accelerated in the recent months.
this year the won advanced some 4% to the dollar quoted at 1015.70 on wednesday the strongest level since aug. 1 2008 when the comparable figure was 1014.6.
the won retreated from a nearly six-year high on thursday closing at 1017.70 down 2 won from the previous session's close.
the country's current account has been logging a surplus for more than two years as exports remain firm lending support to the local currency against the us dollar.
asia's fourth-largest economy saw its surplus widen to a record us$79.88 billion in 2013. the bank of korea (bok) projected this year's figure to reach $68 billion. local exporters have accelerated their dollar selling on expectations that the local currency will further gather ground to the dollar.
adding to upward pressure on the best performer among 17 major currencies foreign investors massively scooped up local shares with their net buying in the past two months reaching some 6 trillion won ($5.89 billion).
a central bank is normally forced to cut rates when a currency rises sharply. but the bank of korea is cautious about doing so as the economy is on a recovery track and inflation is gathering pace.
south korea's consumer prices grew 1.7% on-year in may the fastest on-year rise since october 2012 when they advanced 2.1% according to the report by statistics korea. (qna)
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