South Korea’s won climbed to the strongest level in seven weeks as gains in global equities supported demand for emerging-market assets.
The Kospi index of local shares rose for a fourth day after the Standard & Poor’s 500 Index reached an all-time high yesterday. The won was also supported by exporters selling dollars near the month-end. South Korea’s overseas shipments increased 0.4 percent this month from a year earlier following a 5.4 percent gain in July, according to the median estimate in a Bloomberg survey of analysts before data due Sept. 1.
“Equity gains are supporting the won, and recently we’ve seen bullish dollar bets wane as exporters sell the greenback whenever the won weakens,” said Jahng Won, a currency trader for Shinhan Bank in Seoul. Investors will be cautious about intervention by the authorities as the won appreciates, he said.