Wednesday, July 4, 2007

South Korean Won Strengthens on Speculation Interest Rates Will Increase

(Bloomberg) -- The South Korean won rose, approaching
the highest this year, on speculation the central bank will raise
interest rates, boosting the appeal of fixed-income assets.

The won, the best performer in the past month of the 10
most-traded Asian currencies, also gained as Finance Minister
Kwon Okyu said today monetary policy should be aimed at
``controlling liquidity'' because prices may rise. The won added
almost 9 percent last year as the central bank raised rates three
times to 4.5 percent. It has left policy unchanged this year.


Read more at Bloomberg Currencies News

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