South Korea’s won weakened for a third day as escalating violence in Iraq sapped demand for riskier assets.
The Iraqi army attacked positions held by Sunni Muslim militants north of Baghdad last week to regain territory. The currency traded near a one-week low after Bank of Korea Governor Lee Ju Yeol said in comments released yesterday there’s less clarity whether gross domestic product growth will meet the central bank’s 4 percent forecast in 2014. Finance Minister nominee Choi Kyung Hwan said the economic recovery is slow, Yonhap News reported yesterday.
“The won is falling due to events in Iraq, but I don’t expect the trend to continue as many are waiting to sell dollars as the won weakens,” said Jahng Won, a Seoul-based currency trader for Shinhan Bank.