by pna
The
South Korean won has gained the most against the United States (U.S.) dollar among Asian currencies since July as global stimulus measures have added liquidity to the market, data showed Monday.
The won has climbed 4.5 percent against the greenback since July 2, marking the highest appreciation among Asian currencies, according to the data by the Bank of Korea.
The local currency ended at 1,097 won against the greenback on Friday after breaching the 1,100 won level in the previous session for the first time since Sept. 9, 2011.
The Chinese yuan and the Singapore dollar climbed 1.8 percent and 3.69 percent against the greenback, respectively, over the cited period.
Meanwhile, the euro gained 2.2 percent against the U.S. dollar.
The Asian currencies' ascent came as the economic stimulus measures taken by advanced countries exerted upward pressure by adding more liquidity into the global market, dealers said.
In September, the European Central Bank announced an unlimited government debt purchasing plan, while the U.S. Federal Reserve pledged to inject US$ 40 billion monthly to purchase mortgage-backed securities to revitalize the economy.
Asian currencies also became favorable destinations for investors, as their countries boasted higher key interest rates than advanced nations, market watchers said.
South Korea's key interest rate currently stands at 2.75 percent, while the U.S. and the eurozone hold comparable rate of 0.25 percent and 0.75 percent respectively, industry data showed.
The South Korean won is expected to remain strong against the greenback down the road as its government is reluctant to intervene in the foreign exchange market and holds abundant foreign reserves, market watchers said.
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