The Koreans Don't Want A Super Won

摘要

Will Korea follow Japan's lead and weaken its currency? Speculation about Korean won intervention has circulated among currency traders in Seoul since Sept. 15, when Japan sold enough of its own currency to drive the yen down 2.5 percent in one day. "We think the Bank of Japan will intervene inrnthe yen until it hits 88 per dollar," says Yun Se Min, a Seoul-based currency trader at Busan Bank. "This will provoke the Korean central bank to intervene." The yen is trading around 84 to the dollar: The cheaper it gets, the more affordable its exports will be, especially in the U.S.