During Asian deals on Monday, the South Korean won declined to a 5-day low against the US dollar and the Japanese yen as a fall in regional stocks reduced demand for emerging-market assets.
The stock market in South Korea opened higher today morning, led by automakers and technology-related stocks, but slipped back to negative territory, on weak cues from the U.S markets which ended lower on Friday as investors resorted to profit taking. Investors await more action from the Governments and central banks to fuel hopes of recovery and sustain the momentum in the markets.
The benchmark KOSPI Index in South Korea opened Monday's session higher at 1,240, compared to its previous of 1,238, but slipped into negative territory and is currently trading at 1,225, down 12.34 points, or 1.00%.
In economic news, South Korea's current account balance in February shifted to a surplus of 3.68 billion dollars, the Bank of Korea said today, following the 1.64 billion dollars deficit in January.
The goods account shifted from the previous month's $1.74 billion deficit to a surplus of $3.15 billion as despite a year on year fall in both exports and imports, imports decreased at a faster rate than exports.
The South Korean won slipped to a 5-day low of 1380.90 against the US dollar during at 10:05 pm ET Sunday. The dollar-won pair that closed Friday's deals at 1345.10 is currently trading at 1371.45. If the South Korean currency falls further, 1393.6 is seen as the next target level.
The South Korean won traded down against the Japanese yen during early Asian deals on Monday. At 10:35 pm ET, the won touched a 5-day low of 14.0905 against the yen, compared to 13.7365 hit late New York Friday. The South Korean currency is currently trading at 14.00 with 14.60 seen as the next target level.
The yen gained despite a disappointing economic report from Japan. Industrial output in Japan plummeted by 9.4 percent in February compared to the previous month, falling for the fifth straight month and marking the third-largest fall on record, the Ministry of Economy, Trade and Industry said today. That was slightly worse than forecasts that called for a decline of 9.0 percent following the 10.2 percent decline in January.
On an annual basis, industrial output dropped 38.4 percent versus forecasts of a 38.1 percent decline after the 31.0 percent retreat in the previous month.
For comments and feedback: contact firstname.lastname@example.org