Thursday, May 17, 2007

Korean Won Drops to One-Month Low as Officials Say May Sell; Peso Rises

(Bloomberg) -- South Korea's won dropped to a one- month low after the government and central bank said this week they will take action to stem the currency's gain if needed.

The won is set for its worst two-day decline since March 5 after Ahn Byung Chan, the central bank's top currency official, said May 16 the won is ``highly overvalued'' and Korea will respond to speculation. This quarter's 0.8 percent rise in the exchange rate versus a 2.9 percent fall in the yen, may hurt exports, which account for 40 percent of South Korea's economy.


Read more at Bloomberg Currencies News

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