ID :
169167
Fri, 03/18/2011 - 10:12
Auther :
Shortlink :
https://oananews.org//node/169167
The shortlink copeid
Won rises 0.77 pct to dollar on G-7 yen pledge
SEOUL, March 18 (Yonhap) -- The South Korean currency rose 0.77 percent against the U.S. dollar on Friday as the Group of Seven (G-7) nations' concerted efforts to stem the yen's sharp gains revived appetite for risky assets, analysts said.
The Korean currency closed at 1,126.60 won against the greenback, up 8.70 won from Thursday's close. The won rose to the strongest level since March 11 and hit an intra-day high of 1,125.80 versus the dollar.
"The G-7 currency intervention eased market jitters following Japan's quake, reducing appetite for safe assets," said Byeon Ji-young, a currency analyst at Woori Futures Co.
Earlier in the day, the Group of Seven agreed to jointly intervene in the foreign exchange markets in a bid to stem the yen's ascent. It marked the first time the G-7 has intervened since 2000 when it agreed on a joint currency intervention to boost the euro following its launch.
"The Bank of Japan (BOJ) strongly expects that Japan's concerted action with G-7 member countries in the foreign exchange market will contribute to the stable formation of foreign exchange rates," the BOJ said in a statement, adding that it will seek powerful monetary easing and will continue to provide ample liquidity.
In the wake of a powerful earthquake and fears of a nuclear crisis, the Japanese currency has been appreciating to the dollar on growing prospects that Japanese companies and insurers would repatriate funds from overseas to finance the post-quake reconstruction costs.
The yen rose to a post-World War II high of 76.52 per the dollar on Thursday, but the G-7 currency intervention sent the value of the Japanese unit lower to the dollar.
A retreat in risk aversion prompted the Korean currency to sharply appreciate against the Japanese currency. The local currency traded at 1,378.66 won to 100 yen as of 3:30 p.m., up 60.33 won from the previous day. The greenback serves as the benchmark for the won-yen cross rate.
Experts said once the G-7 nations agreed to jointly intervene in the market, the Japanese currency's sharp gain would be curbed.
"The yen could be under upward pressure to the dollar due to demand for asset repatriation. But if they continue to step in the market to keep the yen from sharply rising, interventions would generate some effects," said Jeon Seung-ji, a currency analyst at Samsung Futures Co.
As the coordinated currency intervention is designed to ensure market stability, the Korean currency is expected to be under upward pressure to the greenback over the long haul, analysts said.
"But the direction of oil prices will serve as downward pressure on the won as political upheaval in the Middle East and North Africa is going on," Jeon said.
sooyeon@yna.co.kr
The Korean currency closed at 1,126.60 won against the greenback, up 8.70 won from Thursday's close. The won rose to the strongest level since March 11 and hit an intra-day high of 1,125.80 versus the dollar.
"The G-7 currency intervention eased market jitters following Japan's quake, reducing appetite for safe assets," said Byeon Ji-young, a currency analyst at Woori Futures Co.
Earlier in the day, the Group of Seven agreed to jointly intervene in the foreign exchange markets in a bid to stem the yen's ascent. It marked the first time the G-7 has intervened since 2000 when it agreed on a joint currency intervention to boost the euro following its launch.
"The Bank of Japan (BOJ) strongly expects that Japan's concerted action with G-7 member countries in the foreign exchange market will contribute to the stable formation of foreign exchange rates," the BOJ said in a statement, adding that it will seek powerful monetary easing and will continue to provide ample liquidity.
In the wake of a powerful earthquake and fears of a nuclear crisis, the Japanese currency has been appreciating to the dollar on growing prospects that Japanese companies and insurers would repatriate funds from overseas to finance the post-quake reconstruction costs.
The yen rose to a post-World War II high of 76.52 per the dollar on Thursday, but the G-7 currency intervention sent the value of the Japanese unit lower to the dollar.
A retreat in risk aversion prompted the Korean currency to sharply appreciate against the Japanese currency. The local currency traded at 1,378.66 won to 100 yen as of 3:30 p.m., up 60.33 won from the previous day. The greenback serves as the benchmark for the won-yen cross rate.
Experts said once the G-7 nations agreed to jointly intervene in the market, the Japanese currency's sharp gain would be curbed.
"The yen could be under upward pressure to the dollar due to demand for asset repatriation. But if they continue to step in the market to keep the yen from sharply rising, interventions would generate some effects," said Jeon Seung-ji, a currency analyst at Samsung Futures Co.
As the coordinated currency intervention is designed to ensure market stability, the Korean currency is expected to be under upward pressure to the greenback over the long haul, analysts said.
"But the direction of oil prices will serve as downward pressure on the won as political upheaval in the Middle East and North Africa is going on," Jeon said.
sooyeon@yna.co.kr
