Korean Won Drops as U.S., China Slowdown Signs Damp Rate-Hike Expectations |
| Bloomberg - Aug 11, 2010 |
South Korea’s won dropped the most in six weeks on speculation economic slowdowns in the nation’s largest export markets will deter the central bank from adding to last month’s interest-rate increase at a policy meeting today.
Eight of 15 economists surveyed by Bloomberg predict the Bank of Korea will leave its benchmark rate at 2.25 percent, while the rest predict a repeat of July’s 25 basis-point rise. China’s industrial output expanded at the slowest pace in 11 months in July and new lending in the country was the least Since March. The Federal Reserve two days ago said the U.S. economic recovery will be “more modest” than anticipated.
“There are so many negative factors that even if the central bank hikes rates it won’t have a major impact on the won,” said Yun Se Min, a currency dealer at Busan Bank in Seoul. Economic slowdowns in the U.S. and China may derail the recovery from a global recession, he added.
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- Posted: 2010-08-11 21:31:59
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