Korean Won Climbs, Buoyed by Rebound in Stocks, Oil Decline

By Kim Kyoungwha

July 23 (Bloomberg) -- South Korea's won advanced for a second day on speculation oil prices near a six-week low may temper demand for dollars and as local stocks rebounded.

The Korean currency has strengthened 3.4 percent this month, making it Asia's best performer as policy makers pledged to curb decade-high inflation. Finance Minister Kang Man Soo said yesterday that the government will take action on its currency when there's a ``herd mentality.''


``The won got off to a strong start after overnight bids from offshore players,'' said Ko Yun Jin, a currency dealer with Kookmin Bank in Seoul. ``Rising stocks and falling oil prices are buoying sentiment for the won.''

The currency rose 0.4 percent to 1,013.20 against the dollar as of 9:21 a.m. in Seoul from 1,017.60 yesterday, according to Seoul Money Brokerage Services Ltd. The advance trimmed the won's loss this year to 8 percent.

Central banks intervene in currency markets by selling or buying foreign exchange.

To contact the reporters on this story: Kim Kyoungwha in Beijing at kkim19@bloomberg.net.