South Korea’s won snapped a three-day advance on concern the authorities may intervene in the market to limit its appreciation. Government bonds were steady.
The currency gained 1.3 percent in the last three days, denting the competitiveness of the nation’s exports, which contribute about 45 percent of gross domestic product. The won rose to the strongest level since February yesterday before erasing the gain in a half-hour period, sparking speculation the central bank stepped in to cap the rise. South Korea’s unemployment rate fell to 3.1 percent in August from 3.2 percent in July, Statistics Korea said today.
The won declined 0.2 percent to 1,086.17 per dollar as of 10:06 a.m. in Seoul, according to data compiled by Bloomberg. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, fell 23 basis points, or 0.23 percentage point, to 7.35 percent.
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