FX.co ★ Korean Won Rises on FX Market Expansion

The South Korean won strengthened to around 1,474 per dollar on Friday, extending its gains after two sessions of stability as authorities sought to reassure global investors. In Hong Kong, officials from the Ministry of Economy and Finance underscored Korea’s solid economic fundamentals, substantial foreign exchange reserves, and ample energy stockpiles. They also unveiled plans to extend foreign exchange trading to nearly 24 hours a day, aiming to enhance market access for overseas investors. Sentiment was further supported by a raft of key economic data. Consumer prices rose 2% year-on-year in February, in line with the Bank of Korea’s inflation target and marking the sixth straight month with inflation at or above 2%. In addition, South Korea posted its fifth-largest monthly current account surplus on record in January, at $13.26 billion. The surplus jumped 397.4% from a year earlier and marked the country’s 33rd consecutive monthly surplus.