Korean Won Nears 8-Month High at 1,070.43 per dollar

South Korea’s won rose to within 0.1 percent of an eight-month high on signs of progress in talks to avoid a U.S. debt default and as overseas investors pumped money into local equities. Government bonds rose.

President Barack Obama told Republicans at a White House meeting yesterday that he wants to raise the debt limit and end the partial government shutdown, now in its 10th day, said Representative Hal Rogers of Kentucky. Obama didn’t accept or reject a Republican plan as the two sides pledged to keep talking last night. South Korean Finance Minister Hyun Oh Seok said prolonged budget negotiations would hurt the U.S. and global financial systems.

“Speculation is increasing the budget talks will reach a deal, which may lift sentiment,” said Jeon Seung Ji, a currency analyst at Samsung Futures Inc. in Seoul. “Foreign inflows in local stocks are a strong support for the won.”

Bloomberg

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