The won approached a two-year high as global investors bought South Korean shares before a Federal Reserve report that may detail reasons for maintaining stimulus that has fueled demand for emerging-market assets. Bonds rose.
Fed Bank of New York President William C. Dudley said yesterday that while the world’s largest economy has improved, the growth momentum isn’t strong enough to boost the outlook for jobs. The U.S. central bank releases the minutes of the Federal Open Market Committee’s Oct. 29-30 meeting tomorrow. Overseas funds bought more local equities than they sold today, exchange data show. The won touched a two-year high of 1,054.35 per dollar on Oct. 24 before suspected intervention by the Bank of Korea to curb gains that may harm exports.
“Some of the remarks by Dudley added to speculation the Fed will maintain its stimulus,” said Yoo Hyen Jo, an economist at Shinhan Investment Corp. in Seoul. “Investors would like to find out from the FOMC minutes the opinions of other Fed officials on the policy.”
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