Korean Won Dips to over 5Month Low vs. Dollar

9/29/2014 9:29:51 PM

(MENAFN- Qatar News Agency) Seoul September 29 (QNA) - The South Korean won slumped to its lowest level in over five months as the US economy expanded at the fastest clip in more than two years in the second quarter lending further support to the stronger dollar.

The local currency was quoted at 1049.70 won against the greenback down 5.3 won from the previous session's close according to South Korea's (Yonhap) News Agency.

The figure marks the lowest since the closing price of 1052.20 won on April 8.

South Korea's Finance Minister Choi Kyung-hwan said during a meeting with his staff on Monday that the government needs to "closely monitor" external risks including the yen's recent depreciation against the local currency that could hurt the competitiveness of South Korean exporters.

The local currency has been losing ground against the dollar on expectations that the US Federal Reserve will accelerate its rate hike.

The US economy the world's largest grew at an annual rate of 4.6% in the second quarter the fastest pace since 2011 further raising hopes that its currency would strengthen against its peers.

A further rise in the won-dollar rate was capped as exporters offloaded dollar holdings for end-month settlement and South Korea extended its current account surplus to 30 months in a row in August.

The current account surplus reached US$7.27 billion last month compared with a revised $7.84 billion in July according to the preliminary data by the Bank of Korea.

The local currency also fell to the Japanese yen trading at 959.00 won per 100 yen down 3.47 won. (QNA)

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