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Korean Won down to 1,075.41 per dollar on Intervention Concern

The won fell, reversing an earlier gain, amid concern South Korean authorities will intervene to moderate the currency’s advance after it touched an eight-month high. Government bonds were steady.

The Finance Ministry’s director general, Choi Hee Nam, convened a meeting with exporters in Seoul today to discuss possible “herd behavior” in the currency market after the Federal Reserve last week unexpectedly refrained from reducing its record stimulus that has buoyed global assets. Overseas funds bought more South Korean stocks than they sold for the 20th straight day, adding to $6.3 billion of net purchases this month, exchange data show.

“The won retreated on speculation that authorities may step into the market,” said Han Sung Min, a currency trader at Busan Bank in Seoul. “The decline may be limited as foreign funds continue to buy local stocks.”

Bloomberg [1]

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