Korean Won to 1,075.70 per dollar on Intervention Concern

South Korea’s won snapped a two-day advance on concern authorities will intervene to slow gains after global demand for local shares boosted the currency to an eight-month high. Government bonds rose.

Short-term volatility in financial markets has increased and authorities will respond “flexibly” to instability if needed, Bank of Korea Governor Kim Choong Soo said in Seoul today. The won has gained 6.2 percent this quarter, Asia’s best performance, as global funds added almost $9.2 billion to their holdings of equities in the period, exchange data show.

The won fell 0.3 percent to 1,075.70 per dollar as of 10:02 a.m. in Seoul, according to data compiled by Bloomberg. The currency touched 1,072.31 yesterday, the strongest level since Jan. 25. One-month implied volatility, a measure of expected moves in the exchange rate used to price options, rose eight basis points, or 0.08 percentage point, to 7.06 percent.

Bloomberg

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