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Korean Won: It’s at Two-Month High

Korean Won: It’s at Two-Month High

Korean Won Increases to 2-Month High

Markets were relieved by further government intervention, and the South Korean won traded at $1,350. This was a new record for the last two months. To increase bank system liquidity and reduce the Gangwon Jungdo Development’s default effects. It has raised concerns about a credit crisis in Asia’s fourth-largest economy, South Korea’s central bank recently announced new steps. The once-booming realty sector was hurt by the Bank of Korea’s recent tightening. The liquidity risks are worsened by the fact that it is almost certain that the central banks will raise interest rates even higher.

Every currency around the globe is weaker than the US dollar. However, the South Korean economy remains strong at its core due to the fact that the Korean Won does not represent the principal asset. A weak won does not necessarily mean a poor export-oriented economy. Although opinions may differ, there is a consensus that the economy must be sustained through the crisis of rising interest rates and inflation.

In contrast, when Japan’s economy is primarily dependent on exports and its contribution to the global economy is weak and declining, they issue an excessive…

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