The won traded near a one-month low after North Korean leader Kim Jong Un urged the military to boost readiness against the U.S., heightening geopolitical risks. Government bonds rose.
On a visit to a long-range artillery unit on the frontline, Kim said he’s confident of setting a “sea of fire” on South Korean islands, the communist nation’s Korean Central News Agency reported. The won weakened as overseas investors sold more stocks than they bought for a fourth day after the North threatened a preemptive nuclear strike and South Korea and the U.S. began annual war games yesterday.
“Concerns about North Korea’s threats are keeping the currency weak, while foreign funds are selling more South Korean stocks,” said Hong Seok Chan, analyst at Daishin Economic Research Institute in Seoul. “Some investors, including exporters, are looking to sell dollars around the 1,100 level.”
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