The Korean won opened the week on a buoyant note on multiple favorable news over the Sept. 12-15 Chuseok break.

The Korean won rose nearly 1 percent against the U.S. dollar from the previous closing on Sept. 11 to hit 1,181.0 versus the U.S. dollar during early Monday session on eased tensions between the United States and China and European Central Bank’s monetary easing actions last week. It finished the day at 1,183.1.

The dollar has been hovering around 1,200 since it breached the psychologically-important mark early August amid rising uncertainties in the global market.

The Korean currency strengthened also against other major currencies, with the won gaining 0.7 percent to go above 1,100 against the 100 yen. Against the euro, it gained to as high as 1,321.91.

Market experts anticipate the Korean currency to continue its strengthening trend and pass 1,180-mark.

Washington last week decided to delay a planned increase in tariffs on some Chinese imports by two weeks, while Beijing said it would exempt some U.S. soybeans and port imports from tariffs.

The European Central Bank cut its bank deposit rate by 0.1 percentage point to a record low level of minus 0.5 percent and announced to start buying up eurozone government bonds at a rate of 20 billion euros ($22 billion) monthly as from November to stimulate the regional economy.

Lee Ju-yeol, Bank of Korea governor, during a meeting held on Sunday afternoon to check on the country’s financial market after the drone attacks on oil facilities in Saudi Arabia, said the risk-aversion sentiment has started to ease entering September on hopes for resumption of U.S-China trade talks, improvement in U.S. economic data, and ECB’s monetary easing move. Such positive trend has continued over the Chuseok holiday, he added.

But instabilities in the oil market could reverse the mood for the Korean won.

By Chung Joo-won and Cho Jeehyun

[ⓒ Pulse by Maeil Business Newspaper & mk.co.kr, All rights reserved]