WonYen Coupling Becomes Stronger

12/1/2014 6:32:00 AM

(MENAFN- Qatar News Agency) Seoul November 24 (QNA) - The won-yen coupling or the synchronized movement between the South Korean and Japanese currencies has become more conspicuous since the Bank of Japan expanded the easy money policy in October.

The data released by the Korea Center for International Finance and the Korea Exchange showed Monday that the yen-U.S. dollar exchange rate was 112-point-32 yen per dollar at the end of October rising five-point-two percent to 118-point-21 yen on November 20 according to Korea's (KBS WORLD) website.

During the same period the won-dollar rate also rose four-point-four percent.

Meanwhile other Asian currencies showed smaller growth. The yuan-dollar rate rose zero-point-two percent while the New Taiwan dollar-dollar rate and the Singapore dollar-dollar rate rose one-point-three percent and one-point-five percent respectively.

Market observers say the stronger won-yen coupling is in part because the South Korean authorities actively responded to the weak yen saying they won’t sit idly while a weakening yen undermines the country's export competitiveness.

Unlike the currency coupling however the South Korean stock market moved in the opposite direction from its Japanese counterpart. The Nikkei jumped five-point-four percent between the end of October and November 20 but the KOSPI dropped zero-point-three percent during the same time. (QNA)

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