South Korean won hits nine-year high
The South Korean won rose to its highest point for nine years in foreign exchange trading on Monday as the dollar continued low on interest rate speculation.
The won rose 0.2 per cent to 930.60 against the dollar, while in Europe the euro rose to $1.3123 and sterling traded at $1.9364. Against the yen, the dollar traded at ¥116.09.
The US currency slipped against 11 of the 15 most high-trading currencies in the Asia-Pacific region as analysts tipped that interest rates could fall again in early 2007.
Interest rate futures indicated that investors are hedging their bets against on a 51 per cent chance that that the Federal Reserve will lower rates in March.
Economic figures for the US due today are expected to show that the US housing slump has deepened.
"We've seen the dollar drop and the underlying fundamentals for the US are pointing down," Shahab Jalinoos of ABN AMRO told the International Herald Tribune.