The South Korean won climbed from a 4-day low against the US dollar and the yen, as the South Korean stock market is higher today.
The stock market in South Korea is trading in positive territory on Monday morning, led by automakers and ship builders on expectations of revival in the global economy. The benchmark KOSPI Index opened Monday's session at 1,342, higher than its previous close of 1,336, and is currently trading at 1,339, up 3.37 points, or 025%.
On economic front, a report released by Bank of Korea revealed that spending on private education during the year 2008 increased 7.6% despite weaker financial and economic conditions in the country. According to the report, the parents in South Korea spent 18.72 trillion won, equivalent to $14 billion, during 2008, 7.6% more than the earlier year.
The South Korean Won recovered Monday's early Asian session losses against its Japanese counterpart. The won thus climbed from a 4-day low of 13.3805 to 13.2645 by about 12:20 am ET. If the South Korean currency ticks up further, 13.10 is seen as the next likely resistance level. The yen-won pair closed Thursday's deals at 13.2405.
A report released by the Bank of Japan showed that Japan's corporate goods prices index or the producer price index fell 0.2% month-over-month in March, in line with the expectations. During February, the index declined 0.5%. Producer prices have been seeing a declining trend since September 2008.
The South Korean won bounced back against the greenback after falling to a 4-day low of 1342.85 during Monday's early Asian trading, by about 8:30 pm ET. The won rose to 1328.50 within a few minutes, which may be compared to Thursday's New York session closing value of 1329.10. As of now, the pair is trading at 1333.00.
Today no major economic reports are scheduled for release from the US economy. On Friday, the markets in the U.S. and Europe were closed on account of Good Friday.
Last week, South Korea's central bank forecasted nation's economy to shrink by 2.4 percent in 2009, what would be the country's first GDP fall since 1998. The contraction marks a revision from the central bank's December forecast, which predicted GDP would grow by 2.0 percent in 2009 and 4.0 percent in 2010.
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