The South Korean won climbed to a 2-1/2 month high against the US dollar and an 11-week high against the Japanese yen during Thursday's early deals as a rally in equities increased demand for the emerging-market assets.
The domestic market is capitalizing on the advance by Wall Street stocks yesterday following the release of an unexpected increase in the U.S. durable goods orders for February and positive new home sales report.
The benchmark KOSPI Index in South Korea opened Thursday's session lower at 1,226, compared to its previous of 1,229, and is currently trading at 1,237, up 8.02 points, or 0.65%.
The South Korean won spiked higher against the US dollar during early Asian trading on Thursday. The won rose to 1335.10 against the buck by 12:40 am ET, the highest level since January 12. On the upside, 1326.0 is seen as the next target level for the won. The dollar-won pair was worth 1355.40 at Wednesday's North American close.
So far this month, the won has gained 16% against the dollar.
Across the Atlantic, the US fourth quarter GDP, weekly initial jobless and continuing claims are slated for release at 8:30 am ET, today.
Later in the day, Fed's Jeffrey M. Lacker, Richard W. Fisher, Timothy F.Geithner and Gary Stern are expected to deliver speeches.
The South Korean won advanced against the currency of Japan during Thursday's early Asian trading, rising to an 11-week high of 13.7035. On the upside, the next likely target level for the South Korean currency is seen around 13.68 level. The yen-won pair closed yesterday's deals at 13.8945.
The South Korean currency has been climbing against the Japanese yen after it reached a new multi-month low of 16.3395 on March 03. Since then, the won has gained 16% against the Japanese unit.
The Bank of Japan said today that corporate service prices in Japan were down 2.6 percent on year in February, posting an index score of 92.1. On a monthly basis, corporate service process inched higher by 0.2 percent.
The domestic corporate goods price index was down 1.1 percent on year, the data showed, showing an index score of 105.0. On month, CGPI was off 0.4 percent.
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