Bloomberg News

Won Gains Most in Almost a Month as Greece Default Risk Eases

June 21, 2011

June 21 (Bloomberg) -- South Korea’s won advanced the most in almost one month and government bonds dropped as concern eased that Greece will default on its debt after Luxembourg’s Jean-Claude Juncker assured investors a solution will be found.

Juncker, who leads the group of euro-area finance ministers, said Greek Prime Minister George Papandreou had assured him the government would take steps needed to obtain financial aid from the European Union and the International Monetary Fund.

“Market nervousness over Greece’s debt issue retreated a bit over Juncker’s comments, pushing up stocks and the currency,” said Jeong Mi Young, a currency analyst at Samsung Futures Inc. in Seoul. “Still, the market is likely to see ups and downs depending on developments.”

The won climbed 0.6 percent to 1,078.73 per dollar at the 3 p.m. close in Seoul, the biggest gain since May 26, according to data compiled by Bloomberg. South Korea’s main Kospi index rose 1.4 percent, climbing the most since May 31.

The yield on the 4 percent government bonds due March 2016 rose three basis points, or 0.03 percentage point, to 3.95 percent, according to prices from Korea Exchange Inc.

--Editors: Sandy Hendry, Brett Miller

To contact the reporter on this story: Seyoon Kim in Seoul at skim7@bloomberg.net

To contact the editor responsible for this story: Sandy Hendry at shendry@bloomberg.net


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