South Korean won rises to over 5 year high against dollar

The Korean currency rose to its highest in more than five years against the US dollar on Wednesday on the back of the greenback’s weakness against major currencies and exporters’ dollar sales from brisk exports. The local currency closed at 1,022.50 won against the greenback, up 7.8 won from the previous session’s close, (Yonhap) News Agency reported. It marked the highest level since Aug. 7, 2008 when the local currency hit 1,016.50 won per the dollar. The won’s gain came as the dollar depreciated against major currencies on weaker-than-expected US economic growth for the first quarter. Exporters also unloaded the greenback as Seoul’s exports remained robust in April, experts said. “The greenback weakened as data on the first-quarter economic growth in the US was softer than expected and the euro gained ground as prospects for a rate cut eased,” said Jeon Seung-ji, a currency analyst at Samsung Futures Co. She said that foreign exchange authorities may intervene in the market to prevent the won from breaching the 1,020 won level. South Korea logged a current account surplus for the 25th straight month in March as exports remained firm. The central bank forecast that the 2014 surplus will reach US$68 billion following a record $79.88 billion in 2013.