Key facts
- The South Korean won strengthened against the U.S. dollar on Friday.
- This strengthening is attributed to expectations of a slower U.S. jobs growth.
- Slower job growth may lead the Federal Reserve to moderate its anticipated rate hikes.
- The won opened at 1,544.5 won per dollar, its strongest level since June 30.
- The won's rise was also supported by a stronger Japanese yen against the dollar.
The South Korean won strengthened against the U.S. dollar on Friday, with analysts attributing the rise to expectations that a slowdown in U.S. employment growth could prompt the Federal Reserve to moderate its anticipated interest rate hikes this year. The won opened at 1,544.5 won per dollar, an increase of 11.3 won from the previous session, marking its strongest level since June 30. At one point during morning trading, the won had gained 2.9 won to reach 1,545.4 won to the greenback.
Despite the day's gains, the won has experienced persistent weakness against the dollar recently, largely due to foreign investors continuing to sell off local stocks. At the close of onshore trading on Thursday, the won was quoted at 1,555.8 won per dollar, having remained in the 1,550-level for two consecutive days. Analysts also noted that the strengthening of the Japanese currency against the dollar provided additional support for the won's appreciation.