Bloomberg News

Korean Won Falls for Second Day as Output Data Signal Slowdown

July 29, 2011

July 29 (Bloomberg) -- South Korea’s won declined for a second day on signs that Asia’s fourth-largest economy is slowing.

The currency headed for a weekly drop as Statistics Korea said industrial production expanded 6.4 percent in June from a year earlier, the slowest pace in nine months. Global funds sold more local shares than they bought for a fifth day as Samsung Electronics Co., the world’s largest maker of televisions and flat-screen panels, reported an 18 percent drop in second- quarter profit.

“Foreign investors are likely to shy away today given weak production data,” said Jeong My Young, a Seoul-based senior currency analyst at Samsung Futures Co. “Market players are being cautious as U.S. and Europe issues remain unsolved.”

The won fell 0.2 percent today, and by the same amount this week, to 1,054.08 per dollar at the 3 p.m. close in Seoul, according to data compiled by Bloomberg.

Obama administration officials will brief the public after financial markets close today on priorities for paying the nation’s bills if the U.S. debt limit isn’t raised, a Democratic Party official said.

Spain’s credit ratings were placed by Moody’s Investors Service on review for a possible downgrade because of funding pressure and challenges faced by regional governments to meet their budget targets.

The yield on South Korea’s 4 percent bonds due March 2016 rose three basis points, or 0.03 percentage point, to 4.02 percent, according to prices from Korea Exchange Inc.

--Editors: Ven Ram, Brett Miller

To contact the reporter on this story: Kyoungwha Kim in Singapore at kkim19@bloomberg.net; Jiyeun Lee in Seoul at jlee1029@bloomberg.net

To contact the editor responsible for this story: James Regan at jregan19@bloomberg.net.NI FRX


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