Korean Won Rises, Erasing Loss, on Speculation Banks Are Buying

By Kim Kyoungwha

Feb. 12 (Bloomberg) -- South Korea’s won rose, erasing a loss, on speculation banks bought the currency near a two-month low after the central bank slashed its benchmark interest rate to a record.

The won strengthened 0.4 percent to 1,387.55 per dollar as of 11:29 a.m. in Seoul, according to Seoul Money Brokerage Services Ltd. The currency fell earlier to 1,398.45.

Bank of Korea Governor Lee Seong Tae and his board cut the seven-day repurchase rate by half a percentage point to 2 percent in Seoul today, the sixth reduction since early October. The decision was expected by six of nine economists surveyed by Bloomberg News.

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