À̹ÌÁö È®´ë The South Korean currency has strengthened against the U.S. dollar, reversing the previous trend ahead of the Federal Open Market Committee (FOMC) meeting where the Federal Reserve is expected to remain accommodative on its monetary policy stance.
The Korean won closed at 1,132.1 won against the U.S. dollar on Monday, gaining 5.2 won from Friday¡¯s close at 1,137.3 won when the dollar strengthened to this year¡¯s highest at 1,139.2 won during trading. The local currency extended its rally against the U.S. dollar after opening at 1,136.0 won, up 1.3 won from the previous session¡¯s closing.
The won gained the greenback thanks to positive signals on the geopolitical, trade and U.S. economic front.
North Korea¡¯s vice foreign minister Choe Son-hui delivered a warning last week, threatening to halt the negotiating process with the United States over the denuclearization process, but U.S. National Security Adviser John Bolton and Secretary of State Mike Pompeo continued to open possibility for talks with the North, easing concerns over mounting uncertainty on the Korean Peninsula after the breakdown of a summit between U.S. President Donald Trump and North Korean leader Kim Jong-un last month.
An optimistic outlook on the U.S.-China trade war also put a brake on the strengthening in the U.S. dollar. China¡¯s Xinhua News Agency reported that Chinese Vice Premier Liu He held a telephone call last week with U.S. Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin, and discussed key issues in trade talks. The state news agency said that the two sides set the next steps in ¡°working arrangements.¡±
The scheduled FOMC meeting on March 19-20 also helped the Korean won gain against the U.S. dollar amid growing expectations that the Federal Reserve will maintain its accommodative stance.
By Kim Yeon-joo and Lee Eun-joo
[¨Ï Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]