South Korea’s won headed toward a two-year high on speculation exporters are converting overseas income to pay for month-end expenses. Sovereign bonds fell.
The government will strengthen efforts to limit the won’s rise because its recent rally weakens the competitiveness of the nation’s exports, Yonhap News cited an unidentified finance ministry official as saying. The nation’s consumer confidence rose to the highest level this month since May 2012 while department store sales gained 2.8 percent from a year ago in September, official data showed today.
“We expect exporters to sell dollars to cover month-end expenses,” said Cho Young Bok, a currency trader at Daegu Bank in Seoul. “As the authorities have shown a firm stance on curbing the won’s rise, investors are cautious about betting aggressively on the currency.”