South Korean won's gain widens to 0.9%, local exporters expected to sell U.S. dollars
The South Korean won extended gains, outperforming all other Asian emerging market currencies, on expectations that local exporters will convert dollar earnings into won this month. USD/KRW fell as much as 0.9% to 1477.70. The Bank of Korea announced a rate hike on Thursday morning, in line with market expectations, providing support for the rise of the South Korean won. Hanwha Marine is said to plan to sell U.S. dollar forwards this week, and SK Hynix is said to have started using forwards earlier this month to hedge U.S. dollar capital flows brought about by the listing of American depositary receipts.