The won traded 0.7 percent off a two-year high as South Korea’s current-account surplus widened and as its export outlook improved. Government bonds rose.
The excess in the broadest measure of trade expanded to $6.57 billion in September from a revised $5.68 billion in August, official data showed today. Asia’s fourth-largest economy will likely post record exports in October, Trade Minister Yoon Sang Jick said today before figures due Nov. 1. Global funds sold more local equities than they bought, snapping a record 42-day run of net purchases, exchange data show, as the Federal Open Market Committee starts a two-day meeting to consider whether to taper its unprecedented stimulus.
“The current account surplus supports the won,” said Jude Noh, chief currency trader at Suhyup Bank in Seoul. “Investors are in a wait-and-see mode before the FOMC meeting, although it’s likely the Fed will keep its previous policy stance.”
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