The won touched a seven-week high, and bond yields fell to a record low, as South Korea posted a trade surplus and the U.S. Federal Reserve’s stimulus program fueled speculation investors will buy more emerging-market assets.
Exports from Asia’s fourth-largest economy rose 0.4 percent from a year earlier in April, exceeding imports for a 15th straight month, government data showed yesterday, while inflation cooled. Manufacturing expanded for a third month, a separate report showed today. The Fed said yesterday it will keep buying $85 billion of bonds each month and stands ready to raise or lower purchases as economic conditions evolve.
“The trade surplus is adding to dollar supply and exporters are selling,” said Jeon Seong Ji, a currency analyst at Samsung Futures Inc. in Seoul. “With the Fed maintaining its bond-purchase program, speculation is rising that increased liquidity in emerging markets will support the won.”
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